MANILA, Philippines — Prime Infrastructure Capital Inc., owned by ports and casino tycoon Enrique Razon Jr., has started the process of drawing investors to its P28-billion initial public offering (IPO).
The infrastructure and holding company commenced its anchor IPO roadshow in Singapore, Malaysia, and Manila last week and has set meetings in the US and London this week, sources in the investment community told The STAR.
After the anchor roadshow and securing regulatory approvals, Prime Infra will conduct its pre-deal investor education events, which will involve meeting with prospective investors, then proceed with its management roadshow.
Prime Infra’s IPO, targeted by as early as October, could be the country’s largest this year despite market volatility caused by elevated inflation and an aggressive monetary policy tightening across the globe.
According to its filing with the Securities and Exchange Commission, Prime Infra plans to sell up to 1.93 billion shares, including an over-allotment option, at a maximum price of P14.60 a piece.
Proceeds of the IPO would be used for Prime Infra’s energy business, water, and waste and sustainable fuels businesses. Eighty percent of the company’s revenue comes from listed Manila Water Inc., now led by Razon after acquiring a controlling stake in the water distribution utility company from the Ayala Group.
Prime Infra is a holding company focused on the ownership of infrastructure companies across four core industrial sectors – water, energy generation, construction, and waste and sustainable fuels – in the Philippines and other emerging markets.
Its principal operating businesses and portfolio companies are held through direct shareholdings in wholly owned subsidiaries Prime Metro Power Holdings Corp., Prime Metroline Infrastructure Holdings Corp., and Prime Infrastructure Inc.
Prime Infra is expanding its renewable energy business, recently acquiring a majority stake in renewable energy developer Olympia Violago Water and Power Inc. (OVWPI).
OVWPI is in the pre-development stage of the 500-megawatt (MW) Wawa pumped storage hydropower project in Rizal province, which will start construction next year.
Prime Infra’s pipeline include a 1,200-MW pumped storage hydropower plant in Pakil, Laguna, and a solar project in Tanauan, Batangas and Maragondon, Cavite.
It also includes the Terra Solar project, a solar power facility with a capacity of 2,500-MW combined with 4,000-MWh battery energy storage system.
Prime Infra tapped BDO Capital & Investment Corp., BPI Capital Corp., and CLSA Ltd. to facilitate its IPO.