Okada Manila Considers Philippine IPO
Universal Entertainment's Okada Manila, a Philippine casino resort, is said to be considering an initial public offering for a value of $500 million to $750 million. If they go through with this plan, they might list the casino operator's shares on the Philippine Stock Exchange sometime in 2024. Two unnamed sources say Okada Manila has selected BDO Capital & Investment Corp. and CLSA to manage the transaction. The initial plan was to list in late 2024, but due to unstable market conditions and ongoing talks for Universal Entertainment to refinance $760 million in debts due in December, the timeline had to be adjusted.
If Okada Manila does proceed with a PSE listing, it would be the third operator of a local casino to join Solaire Resort and City of Dreams Manila on the bourse.
Okada Manila Reviving IPO Scheme
Rumors of an Okada Manila IPO resurfaced after the company's failed attempt to merge with special purpose acquisition company (SPAC) 26 Capital in 2021. The deal would have seen the Philippine casino company listed on the Nasdaq in New York. However, a lengthy court battle between the two sides resulted in the Delaware Court of Chancery ruling that Okada Manila hadn't been obligated to abide by the original merger agreement reached in October 2021.
The bulk of the opposition came from billionaire Kazuo Okada, who even tried to seize control of the integrated resort in May 2022 with 50 private security guards and the Paranaque City Police. By February 2023, 26 Capital was suing Universal Entertainment and its affiliates related to Okada Manila, alleging they were intentionally stalling the merger talks.
Operated by Tiger Resort Leisure & Entertainment Inc., a Universal affiliate, Okada Manila also has a majority stake in the on-hold Emerald Bay casino project in Cebu, but it hasn't been clarified if this project will be part of the Okada Manila IPO.
Possible Timing for Okada Manila IPO
The prospect of an Okada Manila IPO seems promising given its current positive performance. The resort's operating profits climbed 280% in 2023, while revenue increased by 35.1%. According to Universal, the number of visitors and business volume rose in all categories.
The first quarter of 2023 did experience a slowdown in VIP clientele, but the broader outlook for the Philippine casino gaming sector is promising and is seen as a prime growth opportunity in the Asia-Pacific region beyond Macau and Singapore.
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Source: www.casino.org
