Hann Holdings says timing, not fundamentals, behind IPO deferral

HANN HOLDINGS, INC. said its decision to defer its P13-billion initial public offering (IPO), originally scheduled for listing next month, aims to protect investors until market conditions improve.

“We believe it is in the best interests of our investors and stakeholders to enter the market when conditions will allow for a fair reflection of the value we have created and the opportunities ahead,” Hann Holdings Chairman, President, and Chief Executive Officer Dae Sik Han said in an e-mailed statement on Tuesday.

“Our decision to defer the offering and listing is a matter of timing, not fundamentals. The strength of our business, our growth pipeline, and our long-term strategy remain firmly intact,” he added.

Hann Holdings, which operates the Hann Casino Resort in Clark, Pampanga, was supposed to be the second IPO this year, following Cebu-based fuel retailer and distributor Top Line Business Development Corp. The Philippine Stock Exchange expects six IPOs this year.

The company said it intends to proceed with the public listing at an “opportune time when market and industry conditions are more favorable.”

“In the meantime, we remain fully committed to executing our business plans, advancing our strategic initiatives, and maintaining governance and disclosure practices at the highest level,” Mr. Han said.

“When the right window emerges, we are confident that our listing will be a catalyst for further growth,” he added.

Last week, various news outlets reported that Hann Holdings opted to defer its IPO, citing market conditions. This reversed the company’s stance earlier this month when it said there was no expected pushback on its public listing.

According to the company, its stock market debut was postponed after consultations with advisers and stakeholders.

“The company continues to execute strongly on its business strategy and growth initiatives. However, it believes that current market conditions do not allow for an offering outcome that would accurately reflect its intrinsic value and long-term prospects,” it said.

“Against this backdrop, Hann Holdings has acted decisively to protect investor value by deferring its listing until conditions are more conducive,” it added.

Hann Holdings’ IPO consists of a primary offer of up to 500 million common shares and an overallotment option of up to 50 million secondary common shares, priced at up to P23.60 apiece. The overallotment option will be offered by Hann Holdings’ parent company, Hann Group Holdings W.L.L.

The offer period was supposed to run from Sept. 9 to 15, with listing on Sept. 23, according to the latest prospectus dated July 31.

Hann Holdings projected P11.43 billion in net proceeds, which will fund the development and expansion plans of Hann Philippines, Inc., as well as general corporate purposes.

The company tapped CLSA Ltd. as the sole global coordinator for the IPO. It will also serve as joint bookrunner, together with domestic underwriters Asia United Bank Corp., BDO Capital & Investment Corp., China Bank Capital Corp., and PNB Capital and Investment Corp. — Revin Mikhael D. Ochave