HANN HOLDINGS, INC. said its decision to defer its P13-billion initial public offering (IPO), originally scheduled for listing next month, goals to guard investors until market conditions improve.
“We consider it’s in one of the best interests of our investors and stakeholders to enter the market when conditions will allow for a good reflection of the worth we have now 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 speculated to be the second IPO this 12 months, following Cebu-based fuel retailer and distributor Top Line Business Development Corp. The Philippine Stock Exchange expects six IPOs this 12 months.
The corporate said it intends to proceed with the general public listing at an “opportune time when market and industry conditions are more favorable.”
“Within the meantime, we remain fully committed to executing our business plans, advancing our strategic initiatives, and maintaining governance and disclosure practices at the very best level,” Mr. Han said.
“When the appropriate window emerges, we’re confident that our listing shall 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 corporate’s stance earlier this month when it said there was no expected pushback on its public listing.
In response to the corporate, its stock market debut was postponed after consultations with advisers and stakeholders.
“The corporate continues to execute strongly on its business strategy and growth initiatives. Nonetheless, it believes that current market conditions don’t allow for an offering final result that may accurately reflect its intrinsic value and long-term prospects,” it said.
“Against this backdrop, Hann Holdings has acted decisively to guard investor value by deferring its listing until conditions are more conducive,” it added.
Hann Holdings’ IPO consists of a primary offer of as much as 500 million common shares and an overallotment option of as much as 50 million secondary common shares, priced at as much as P23.60 apiece. The overallotment option shall be offered by Hann Holdings’ parent company, Hann Group Holdings W.L.L.
The offer period was speculated to run from Sept. 9 to fifteen, with listing on Sept. 23, based on the newest prospectus dated July 31.
Hann Holdings projected P11.43 billion in net proceeds, which can fund the event and expansion plans of Hann Philippines, Inc., in addition to general corporate purposes.
The corporate tapped CLSA Ltd. as the only real global coordinator for the IPO. It would also function joint bookrunner, along 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