Prime Infrastructure Capital Inc., the infrastructure arm of port tycoon Enrique Razon Jr., plans to raise P28.2 billion from an initial public offering this year.
Prime Infra, based on a filing with the Securities and Exchange Commission, plans to sell a maximum of 1.75 billion primary common shares, with an over-allotment option for another 175.6 million shares, at P14.60 apiece.
Prime Infra has core investments in industrial sectors including water, energy generation, construction and waste and sustainable fuels in the Philippines and other emerging markets.
It holds investments in operating companies Prime Metro Power Holdings Corp., Prime Metroline Infrastructure Holdings Corp., Prime Infrastructure Inc. and Trident Water Company Holdings Inc.
The group said the fresh capital from the IPO would be used to primarily fund its energy and water ventures.
It plans to conduct the maiden share offering in October, based on the indicative timetable in the registration statement.
The IPO terms show that Prime Infra would have a public float of 22 percent, assuming the over-allotment shares are exercised.
Prime Infra booked a net income of P926 million in the first quarter, up 9,721 percent from P9.4 million it earned in the same period last year on strong contribution from Manila Water which Prime Infra acquired in June 2021.
Revenues jumped 745 percent in the first quarter to P5.79 billion from P684.6 million a year ago.
Prime Infra tapped CLSA Limited, BDO Capital & Investments Corp. and BPI Capital Corp. as the joint underwriters and book runners for the IPO.
Razon remains the country’s second richest billionaire based on the latest report of Forbes Asia magazine. He established his wealth by managing container ports in the country and overseas under International Container Terminal Services Inc. and gaming firm Bloomberry Resorts Corp. which operates Solaire Casino & Resorts.
The PSE earlier said it expects a record number of listings this year despite the volatile market conditions.
Six companies already conducted initial public offerings as of June 21, and one more—Balai ni Fruitas Inc.—is expected to follow by the end of the month.
Gadgets retailer Upson International Inc. also has pending IPO application with corporate regulators.
The bellwether Philippine Stock Exchange Index is nearing bear market conditions after a steady decline in recent weeks on concerns about rising inflation and interest rate and slowdown in the global economy.