Razon files P28-billion Prime Infrastructure IPO

PHILIPPINE ports and gaming tycoon Enrique Razon, Jr. on Tuesday launched an up to P28-billion ($515 million) initial public offering (IPO) for his infrastructure and energy holding firm, according to a corporate filing.

The IPO of Prime Infrastructure Capital, Inc. could be the country’s largest this year, despite volatility caused by elevated inflation and an aggressive monetary policy tightening in the region.

Prime Infrastructure in its filing to the regulator said it plans to sell up to 1.93 billion shares, including an overallotment option, at a maximum price of P14.60 apiece. In Philippine filings, IPO prices are typically set above final selling prices, and the number of shares for sale could be cut.

If approved, the company will target October for the offer period and listing on the Philippine bourse, which has seen the listing of seven firms this year. The main index has lost 11% so far this year, tracking regional peers.

Mr. Razon, who Forbes says is the second-richest person in the Philippines with a net worth of $6.7 billion, built his fortune through casino-resort group Bloomberry and global port operator International Container Terminal Services, Inc.

The 62-year-old earlier this month announced his acquisition of a controlling stake in a South China Sea gas field. Reuters first reported his interest in May.

Fresh capital will be used for the Prime Infrastructure’s energy, water, and waste and sustainable fuels businesses.

It is building the world’s largest solar power facility, with a capacity of 2,500-3,500 megawatts (MW) combined with a 4,000 MW-hours (MWh) to 4,500 MWh battery energy storage system.

A banking source prior to Tuesday’s filing told Reuters the amount of capital required in Mr. Razon’s expansion program was too high for the debt or loan market.

Prime Infrastructure hired BDO Capital & Investment Corp., BPI Capital Corp., and CLSA Ltd. to facilitate the deal. — Reuters

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