Philippine magnate plans $473m infrastructure arm IPO

Tycoon of Philippine ports and casinos Enrique Razon plans to use the initial public offering of his infrastructure company to raise up to 25.63 billion pesos ($472.7 million).

According to a prospectus submitted on Tuesday to the country’s Securities and Exchange Commission, the majority of the additional money would finance Prime Infrastructure Capital’s energy projects.

The corporation intends to take over the Malampaya natural gas project, which provides a fifth of the power needs of the Philippines, in addition to constructing the largest solar power facility in the world with a combined capacity of 2,500 to 3,500 megawatts.

Including 175.58 million option shares that its parent may purchase to maintain Prime Infrastructure’s post-listing share price, Prime Infrastructure intends to sell up to 1.76 billion shares at up to 14.6 pesos each, as stated in the prospectus. October is the anticipated date for the share sale and listing on the Philippine Stock Exchange.

While BPI Capital and BDO Capital were chosen as the local underwriters, Prime Infrastructure has designated CLSA as the sole worldwide coordinator and bookrunner. After seven IPOs so far, Prime Infrastructure’s debut on the PSE may be the biggest this year.