Billionaire Enrique Razon’s Prime Infra to raise up to $518 million through Philippines IPO

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Prime Infrastructure Capital – controlled by billionaire Enrique Razon, Jr. – is raising up to 28.2 billion pesos ($518 million) in an initial public offering on the Philippine Stock Exchange in October to fund investments in renewable energy and water utilities.

The company plans to sell up to 1.94 billion shares (including an over-allotment option of up to 175.6 million shares) at a maximum price of 14.60 pesos each, according to the company’s prospectus. IPO it filed Tuesday with the Securities and Exchange Commission.

The IPO – which is managed by CLSA as global coordinator and bookrunner, and by BDO Capital and BPI Capital as domestic underwriters – comes as Prime Infra steps up its investments in renewable energy and utilities of water.

Prime Infra announced earlier this month plans to build the world’s largest solar farm in partnership with Solar Philippines, founded by businessman Leandro Leviste, a UKTN 30 Alumnus under 30 – and at the same time acquiring a majority stake in the Malampaya gas project in the Western Philippine Sea from Davao-based tycoon Dennis Uy.

The company will proceed with the first stock sale if market sentiment is favourable, Razon told Bloomberg, which previously announced the IPO plans. Recent domestic quotes have faced headwinds amid growing inflationary pressures and rising interest rates. Meat supplier North Star Meat Merchants postponed its IPO due to market volatility, while shares of Vista REIT – controlled by Razon billionaire Manuel Villar – fell on its first day of trading the last week, even after the commercial owner reduced the size and price of the offer.

In addition to solar energy, Razon, through Prime Infra, has invested in hydroelectric power plants and water services in recent years. In June 2021, Trident Water, a subsidiary of his infrastructure-focused Prime Strategic Holdings, took over Manila Water from Ayala Corp. Razon is also the majority shareholder of global port giant International Container Terminal Services Inc. and Bloomberry Resorts, operator of the Solaire Resort and Casino in Manila. Razon has a net worth of $5.7 billion, according to UKTN‘ real-time data.

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