MANILA — Hann Holdings Inc., a prominent South Korean-led developer, has indefinitely postponed its planned P13-billion initial public offering (IPO) originally scheduled for next month. In a letter dated August 22 addressed to the Securities and Exchange Commission (SEC), the company stated that prevailing market conditions "are not conducive to a successful offering that would best reflect the value and prospects of the company and ensure the best outcome for our investors and stakeholders."

Despite the delay, Hann assured stakeholders that the decision does not diminish its long-term growth outlook, which remains robust. The firm had intended to offer 500 million primary shares priced at P23.60 each from September 9 to 15, with a planned listing on the main board of the Philippine Stock Exchange scheduled for September 23. Additionally, Hann held an over-allotment option for up to 50 million shares at the same price.

The company is currently reassessing its timetable and will submit a revised schedule to regulatory authorities once market and industry conditions become more favorable. Hann Holdings, which developed the five-star Clark Marriott hotel, operates within a sector facing considerable challenges, particularly among brick-and-mortar casino operators.

The difficult environment is exemplified by Bloomberry Resorts Corp., led by Enrique Razon Jr., which reported a 50% drop in net income in the first half of the year due to weaker performance in its VIP segment. Nonetheless, Hann’s chair and CEO, Dae Sik Han, has expressed confidence in the company’s "first-mover advantage" in Clark as a key factor to attract investors.

Proceeds from the IPO were intended to fund expansions at the 455.6-hectare Hann Reserve, a mixed-use development in New Clark City, as well as to develop a new two-story facility adjacent to the existing Hann Casino in Clark Freeport Zone and to enhance its online gaming platforms. These plans persist despite ongoing concerns over potential government bans on online gambling, which have negatively impacted peers such as Bloomberry and DigiPlus Interactive Corp.

This postponement comes amid a subdued IPO market locally, with only one public offering so far this year by Cebu-based fuel retailer Top Line Business Development Corp. Maynilad Water Services Inc. also deferred its planned July debut to October to accommodate cornerstone investors.

Hann Holdings’ decision underscores continuing investor caution and challenging market dynamics in the Philippines, especially within the gaming and real estate sectors.