Philippine tycoon Razon plans $515 million Prime Infrastructure IPO

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© Reuters. FILE PHOTO: Enrique Razon, businessman and owner of casino operator Bloomberry Resorts, gestures as he speaks to reporters after a shareholders meeting in Manila June 24, 2013. REUTERS/Romeo Ranoco

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Neil Jerome Morales

MANILA (Reuters) – Philippine ports and gaming tycoon Enrique Razon on Tuesday launched a whopping 28 billion pesos ($515 million) first-ever payment for his infrastructure and energy holding company, according to a company filing. public offering (IPO).

Prime Infrastructure Capital Inc’s IPO could be the largest in the country this year, despite volatility due to rising inflation and aggressive monetary tightening in the region.

Prime Infrastructure said in a regulatory filing that it plans to sell as many as 1.93 billion shares, including over-allotment options, at a maximum price of 14.60 pesos per share. In Philippine filings, the IPO price is often higher than the final sale price, and the number of shares available for sale may be reduced.

If approved, the company will be listed on the Philippine Stock Exchange during the October offer period, with seven companies already listed this year. The main index has fallen 11% so far this year, in line with regional peers.

Forbes called him the second-richest person in the Philippines, with a net worth of $6.7 billion, having amassed his fortune through casino resort group Bloomberry and global port operator International Container Terminal Services.

The 62-year-old announced earlier this month that it had acquired a controlling stake in the South China Sea gas field. Reuters first reported his interest in May.

The new capital will be used for Prime Infrastructure’s energy, water, 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) and a battery storage system of 4,000 to 4,500 MWh.

A banking source ahead of Tuesday’s filing told Reuters that the amount of capital required for Razon’s expansion plans is too high for the debt or loan market.

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

(1 USD = 54.28 PHP)

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