Two sources said Okada Manila—operated by Japan-based Universal Entertainment—has plans to list on the Philippine Stock Exchange by 2025.
BDO Capital & Investment Corp. and CLSA were hired to arrange the deal, paving the way for the listing of the third integrated casino in the Entertainment City gaming complex along Manila Bay, a source told InsiderPH.
A second source said Okada Manila initially planned to list in the latter part of 2024 but this was pushed back due to uncertain market conditions and ongoing talks for Universal Entertainment to refinance $760 million in obligations maturing in December.
Ratings agency Fitch earlier placed Universal Entertainment on a negative ratings watch until it completes its debt refinancing, currently in the advanced stages of negotiations.
Big picture
Okada Manila is reviving IPO ambitions after abandoning listing plans on the US Nasdaq two years ago amid an ownership dispute.
The two other operating casinos in Entertainment City also have listing exposure in the PSE.
These are Entertainment City pioneer Solaire Resort, owned by tycoon Enrique Razon Jr.’s Bloomberry Resorts Corp., and City of Dreams Manila, which is under the SM Group’s Belle Corp.
No more backdoor
In 2018, a unit of Universal Entertainment purchased PSE-listed shell company Asiabest Group International Inc. ahead of a possible backdoor listing for Okada Manila.
The sources said an IPO is now the preferred route since Okada Manila has established a profitable operating track record.
Cebu casino
Last year, Universal Entertainment also announced plans to take majority ownership of the stalled Emerald Bay casino in Cebu, being developed by Davao-based tycoon Dennis Uy’s PH Resorts Group Holdings.
Universal Entertainment, through Tiger Resort Leisure & Entertainment Inc., made initial downpayment of P327.6 million. The deal is subject to a due diligence review and the clearance of regulators.
Profitable casino operations
Based on the 2023 filing of Universal Entertainment in Japan, Okada Manila saw operating profit surge 280 percent to 14.37 billion yen (P5.3 billion) while sales rose 35.1 percent to nearly 97 billion yen (P35.9 billion).
“The number of visitors increased throughout 2023 and the volume of business increased in all categories,” Universal Entertainment said in a regulatory filing.
During the first quarter of 2024, operating profits fell over 57 percent to 1.8 billion yen while net sales slumped 15.5 percent to 20.38 billion yen amid the sharp decline in its high-roller business.
Ownership fight
In May 2022, Japanese tycoon Kazuo Okada and his associates orchestrated a forceful takeover of Okada Manila, which led to physical confrontations that required intervention by Philippine authorities.
The takeover was based on a status quo ante order from the Supreme Court. This was later overturned, leading to Okada’s eventual removal from Okada Manila and restoring the current leadership under Universal Entertainment.
Future of gaming?
The outlook is bright, according to the Philippine Amusement and Gaming Corp.
Gross gaming revenues surpassed pre-pandemic income in 2019 to reach a historic high of P285.27 billion, the bulk coming from integrated resorts at P207.5 billion.
Pagcor is aiming for gross gaming revenues to grow 18 percent to P336.4 billion in 2024.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
