Philippine tycoon holds off $474m Infrastructure IPO

Due to the market downturn, Philippine businessman Enrique Razon has postponed until the middle of the following year his intentions to list his infrastructure and energy holding company for up to 28 trillion pesos ($474 million), according to its underwriter on Monday.

The Prime Infrastructure Capital Inc. IPO, which was originally scheduled for October, had the potential to be the biggest this year in the Philippines.

Eduardo Francisco, president of deal underwriter BDO Capital, told reporters outside of a media briefing, “We will wait for the markets to recover.

The earliest that Prime Infrastructure might go public would be in May or June of 2023, which would give markets and the global economy ample time to recover and the inflation rate to drop, according to Francisco. Eight companies, primarily small businesses, have listed on the Philippine Stock Exchange, whose broad index (.PSI), which has lost 18 percent year to date and is Southeast Asia’s second worst performer,

The corporate regulator received Prime Infrastructure’s listing filings in June. With an over-allotment option, it intended to sell up to 1.93 billion shares for a maximum of 14.60 pesos apiece. IPO prices are often set higher in Philippine filings than final selling prices.

The IPO revenues were intended to be used by Prime Infrastructure to fund its operations in the energy, water, waste, and sustainable fuels sectors. Razon, who according to Forbes has a net worth of $5.6 billion and is the second-richest person in the Philippines, made his fortune through casino operator Bloomberry Resorts and international port operator International Container Terminal Services.