Razon's Prime Infra slates P28-B IPO
By JAMES A. LOYOLA
Prime Infrastructure Capital Inc. (Prime Infra) of the second richest Filipino Enrique K. Razon Jr. is planning an initial public offering worth up to P28.2 billion.
The Securities and Exchange Commission has received the registration statement of Prime Infra for the primary offer and sale of up to 1.76 billion common shares at an offer price of up to P14.60, with an overallotment option of up to 175.58 million shares.
The offer shares will represent about 22 percent of the issued and outstanding capital stock of the company.
Net proceeds from the offer will be used to fund projects in the Prime Infrastructure Group’s energy, water, and waste and sustainable fuels businesses.
The company engaged CLSA Limited, BDO Capital & Investment Corporation, and BPI Capital Corporation as joint bookrunners for the transaction.
Prime Infra is a company focused on developing, designing, managing and operating key infrastructure assets that enable delivery of essential services to communities in emerging markets worldwide.
As of March 31, 2022, the Group’s businesses comprise four core industrial sectors—water, energy generation, construction, and waste and sustainable fuels— in the Philippines and other emerging markets.
The firm holds its investments and operating companies through the following holding companies: Prime Metro Power Holdings Corporation, Prime Metroline Infrastructure Holdings Corp., Prime Infrastructure, Inc., and Trident Water Company Holdings, Inc.
Trident Water has voting and economic interests of 52.16 percent and 35.6 percent, respectively, of the Manila Water Company, Inc. while Prime Metro Power owns preferred shares in SP Tarlac and operates or has invested in energy generation projects, including hydro, solar, and gas, in the Philippines and Iraq.
Through Prime Metro BMD Corporation (Prime BMD), a joint venture partnership between Prime Metroline and BMD International Pty Ltd., a large Australian civil contractor company, the Group constructs major infrastructure projects in the Philippines.
Prime Infra also holds 7.7 percent of the issued share capital of WasteFuel Global LLC, a California-based entity founded to utilize scalable technologies to convert municipal trash and agricultural waste into low-carbon fuels, renewable natural gas, and green methanol.
Prime Infra and WasteFuel Global have also established a subsidiary WasteFuel Philippines Inc. to develop a facility in the Philippines to convert municipal waste into aviation-grade low- carbon fuel for sale to customers in the aviation sector.
Through Prime Integrated Waste Solutions, Inc., a wholly owned direct subsidiary of Prime Infra, and WasteFuel Philippines, the Group plans to develop an integrated waste and sustainable fuels solution business in the Philippines.