Tycoon Enrique Razon is eyeing to list another company after filing an application for a P28-billion initial public offering (IPO) for Prime Infrastructure Capital Inc. on Tuesday, with the proceeds meant to finance several projects.
The IPO, according to the prospectus it filed with the regulator, consists of a primary offering of 1.76 billion common shares with an overallotment option of up to 175.58 million shares. Offer price is at P14.60 each.
The net proceeds are estimated at P25.02 billion, which would fund projects for its energy, water, and waste and sustainable fuels businesses.
The offer period is from Oct. 3 to Oct. 7. Listing of shares on the Philippine Stock Exchange is slated for Oct. 12.
BDO Capital and BPI Capital are the joint bookrunners and joint local underwriters. CLSA Ltd. is the sole global coordinator and bookrunner.
Prime Infrastructure currently has an authorized capital of stock amounting to P1.4 billion.
‘Familiar name’
Regina Capital Development Corp. head of sales Luis Limlingan said that the “familiar name” of the company would “likely prompt investors to give the IPO more interest than usual.”
“It has a diversified portfolio of businesses that are set to benefit from the country’s continued economic reopening postpandemic, so that’s one thing to look forward to,” he added.
Among its companies are Prime Metro Power Holdings Corp., Prime Metroline Infrastructure Holdings Corp., Prime Infrastructure Inc. and Trident Water Company Holdings Inc.
Last year, the Razon-led group saw its consolidated revenues reach P15.15 billion while consolidated net income amounted to P10.83 billion, supported by its acquisition of Manila Water. It holds 52.16 percent of the voting rights of Manila Water, through Trident Water, as of end-March.
The company also has recently “executed a nonbinding term sheet for the acquisition of a majority of the shares of subsidiaries of Udenna Corp. which own or are in the process of purchasing an aggregate of 90-percent interest in Service Contract 38 of the Malampaya gas field,” according to its prospectus.
“The acquisition is subject to customary processes, including due diligence, execution of definitive agreements and several closing conditions, including the receipt of relevant consents and approvals,” it added. INQ