Tycoon Enrique Razon eyes $515 million Prime Infrastructure IPO

June 22, 2022 - 3:08 PM
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: Enrique Razon Jr, chairman of Bloomberry Resorts Corporation, smiles during a Reuters interview inside his office in Port Area, Metro Manila December 17, 2012. (Reuters/Romeo Ranoco/File Photo)
  • Potentially Philippines‘ largest IPO in 2022
  • Offer period, listing set in October
  • Prime is owned by Philippines‘ second-wealthiest tycoon

 Philippine ports and gaming tycoon Enrique Razon on Tuesday launched an up to 28 billion pesos ($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 over-allotment option, at a maximum price of 14.60 pesos 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 .PSI has lost 11% so far this year, tracking regional peers.

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 BLOOM.PS and global port operator International Container Terminal Services ICT.PS.

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 MWh to 4,500 MWh battery energy storage system.

READ: Billionaire Enrique Razon to build world’s largest solar power facility

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

Prime Infrastructure hired BDO Capital, BPI Capital and CLSA Ltd to facilitate the deal.

($1 = 54.28 Philippine pesos)

—Reporting by Neil Jerome MoralesEditing by Ed Davies, Martin Petty