Prime Infrastructure moves P28 billion IPO to Q1 2023

MANILA, Philippines — Razon-led Prime Infrastructure Capital Inc. will likely move its P28 billion initial public offering (IPO) to the first quarter of next year given the continuing market rout brought about by scorching inflation and rising interest rates, industry sources said.

Prime Infra was looking to list as early as this month and had already started wooing investors through an anchor roadshow in September.

The roadshow was well received by investors but the prevailing market volatility prompted the company to move the much-awaited IPO to next year.

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.

Prime Infra is Razon’s holding company focused on the ownership of infrastructure companies across four core industrial sectors.

These are water, energy generation, construction, and waste and sustainable fuels in the Philippines and other emerging markets. It has also acquired a controlling stake in the Malampaya deep-water gas-to-power project in offshore Palawan.

Razon, through Prime Infra, is making a big push for infrastructure, adding to his ports and casino empire.

One of these projects is the P26.7-billion Wawa Dam that aims to supply water to Metro Manila.

Prime Infra also gained control of Manila Water from the Ayala Group.

In 2021, Prime Infra posted net income of P10.8 billion, nearly 25 times the previous year’s P443 million, on revenue that increased almost five-fold to P15.2 billion, according to Forbes Asia.

Razon, in an interview with Forbes, said: “We’re structured and organized to deal with government bureaucracy. That’s in our DNA. We’re very persistent, very aggressive. We don’t make crazy proposals. We study things very carefully.”

Prime Infra has also recently obtained the green light from the Department of Energy (DOE) to acquire a controlling stake in Dennis Uy’s Udenna-led Malampaya deep-water gas-to-power project in offshore Palawan, touted as the country’s energy crown jewel.

The DOE gave its approval to the transfer of shares by Shell Petroleum N.V. of all shares in Shell Philippines Exploration B.V. to Malampaya Energy XP Pte. Ltd. (MEXP), a subsidiary of Razon’s Prime Infra.

As a result of the transaction, SPEX will become a wholly owned subsidiary of Prime Infra.