Okada Manila Operator Drops Plans for Philippine Stock Exchange Listing
Universal Entertainment, which owns Okada Manila, has decided not to proceed with its plans to list its subsidiary, Tiger Resort, Leisure and Entertainment Inc. (TRLEI), on the Philippine Stock Exchange (PSE). This change in direction follows the impressive and consistent growth of Okada Manila, making a public listing seem less urgent right now.
Earlier this year, Universal Entertainment acquired shares in Asiabest Group International Inc. (ABG) with plans to list TRLEI on the Philippine Stock Exchange (PSE). But after witnessing impressive growth at Okada Manila, Universal changed its mind about going public. Consequently, the company sold its 66.6% ownership in ABG to Premiumlands Corp., a prominent real estate developer in Metro Manila, for PHP 510.4 million (approximately $8.8 million). This decision lets Universal concentrate on further developing Okada Manila.
Okada Manila has become one of the leading integrated resorts in the Philippines, drawing in a mix of local and international guests. With its blend of upscale accommodations, gaming options, and entertainment, it plays a significant role in the country’s tourism and entertainment scene. Universal Entertainment, noticing the steady revenue and growth from Okada Manila, decided that being listed on the PSE wasn’t essential for their long-term strategy.
The company’s choice highlights its commitment to what is proving effective—Okada Manila’s achievements. By steering clear of the challenges associated with going public, Universal Entertainment can focus on enhancing the resort’s features and maintaining its growth. Although the company has put its plans for a public offering on hold for now, it remains open to the idea of reconsidering it down the line if the situation allows.
Universal Entertainment has previously considered going public. In 2021, the company tried to merge with 26 Capital Acquisition Corp., a Special Purpose Acquisition Company (SPAC) on NASDAQ. Unfortunately, that deal did not succeed, leading to the liquidation of the SPAC. After this experience, Universal took a step back to evaluate the advantages of a public listing and concluded it wasn’t the best option at that moment. Now, with Okada Manila flourishing, the company has chosen to concentrate on its resort operations instead of seeking external funding through a public offering.
While the Philippine Stock Exchange might be disappointed by the cancellation of this high-profile listing, but the sale of ABG shares indicates that the real estate market in the Philippines is still appealing to investors. Premiumlands Corp.’s acquisition of ABG shares showcases the continued interest in the nation’s real estate sector, even without the expected public listing.
To sum up, Universal Entertainment’s choice to abandon its plans for a PSE listing is a strategic move influenced by the achievements of Okada Manila. Given the resort’s ongoing expansion, the company believes that concentrating on its primary operations will yield the most favorable outcomes. Although a public offering might be revisited in the future, Universal Entertainment is currently dedicated to securing the long-term prosperity of Okada Manila.