The Philippines Securities and Exchange Commission (SEC) has approved Hann Holdings Inc.‘s PHP11.43 billion ($203 million) initial public offering (IPO), marking the second stock market debut of the year despite mounting pressure from lawmakers calling for stricter regulation of online gambling operations.
According to local media outlet inquirer.net, the corporate watchdog approved the registration statement on Friday with all members present, covering up to 2.5 billion common shares for the integrated gaming resort operator based in Clark Freeport Zone. The company plans to offer 500 million primary shares to the public at PHP23.60 ($0.42) each, including an overallotment option of up to 50 million shares from existing shareholder Hann Group Holdings WLL.
The shares will be offered from September 9th to 15th and are scheduled to list on the main board of the Philippine Stock Exchange on September 23rd. Expected proceeds will fund capital expenditures for development and expansion plans, as well as general corporate purposes of subsidiary Hann Philippines Inc.
The IPO proceeds amid an increasingly challenging environment for the gaming sector, particularly as some senators have filed a bill seeking to regulate online gambling. Meanwhile, a total ban is also among the options under discussion.
In this context, regulatory scrutiny has particularly impacted former stock market favorite DigiPlus Interactive Corp., operator of BingoPlus, ArenaPlus, and GameZone.
However, industry analysts remain optimistic about Hann Holdings’ prospects. Ron Acoba, chief investment strategist at Trading Edge Consultancy, noted that the company’s main income source comes from its brick-and-mortar resort and casino operations, with online offerings serving merely as supplementary revenue streams. This model mirrors recent initiatives by Bloomberry Resorts Corp.’s MegaFUNalo app and Alliance Global Group Inc.’s unnamed online gaming system.
“Since the long-term outlook on physical gaming remains promising, it makes sense to expand now and attract more foreign players for the coming years,” said Kervin Sisayan, head of research at Maybank Securities Inc. He added that an IPO “makes sense” for Hann Holdings, especially if listing on the local bourse becomes a requirement for online gaming operators.
Finance Secretary Ralph Recto has emphasized that subjecting gaming companies to strict disclosure rules would promote transparency in the sector while protecting the public interest.
Hann Philippines currently operates an eleven-hectare property in Pampanga province, featuring Central Luzon’s first five-star luxury hotel, Clark Marriott, and the country’s first Swissotel. The property, originally the Widus Hotel when it opened in 2006, represents a significant tourism and gaming destination in the region.
Despite regulatory headwinds, Hann Holdings has ambitious expansion plans. According to its prospectus, the company aims to expand its portfolio of electronic casino offerings to approximately 500 games by the end of the year, up from the current 103 games available.
The IPO will be managed by CLSA Ltd. as the sole global coordinator and joint bookrunner, alongside Asia United Bank Corp., BDO Capital and Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp.
