Philippine Tycoon Razon Eyes $515 Million Prime Infrastructure IPO

Philippine ports and gaming tycoon Enrique Razon on Tuesday launched an up to 28 billion pesos ($515 million) initial public offering (IPO) for his infrastructure and energy holding firm, according to a corporate filing.

The IPO of Prime Infrastructure Capital Inc could be the country's largest this year, despite volatility caused by elevated inflation and an aggressive monetary policy tightening in the region.

Prime Infrastructure in its filing to the regulator said it plans to sell up to 1.93 billion shares, including an over-allotment option, at a maximum price of 14.60 pesos apiece. In Philippine filings, IPO prices are typically set above final selling prices, and the number of shares for sale could be cut.

If approved, the company will target October for the offer period and listing on the Philippine bourse, which has seen the listing of seven firms this year. The main index has lost 11% so far this year, tracking regional peers.

Razon, who Forbes says is the second-richest person in the Philippines with a net worth of $6.7 billion, built his fortune through casino-resort group Bloomberry and global port operator International Container Terminal Services.

The 62-year-old earlier this month announced his acquisition of a controlling stake in a South China Sea gas field. Reuters first reported his interest in May.

Fresh capital will be used for the Prime Infrastructure's energy, water, and waste and sustainable fuels businesses.

It is building the world's largest solar power facility, with a capacity of 2,500-3,500 megawatts (MW) combined with a 4,000 MWh to 4,500 MWh battery energy storage system.

A banking source prior to Tuesday's filing told Reuters the amount of capital required in Razon's expansion programme was too high for the debt or loan market.

Prime Infrastructure hired BDO Capital, BPI Capital and CLSA Ltd to facilitate the deal.

($1 = 54.28 Philippine pesos)