Prime Infrastructure Capital Inc. seeks to raise as much as P33.2 billion from an initial public offer of shares, documents filed with regulators by the Razon Group-led developer and operator of critical infrastructures showed.
Prime Infra is looking to sell 1.97 billion shares, including shares that will be sold in case of oversubscription, within a price of up to P16.80 each. The shares represent nearly 22 percent of post-IPO outstanding capital.
The IPO is tentatively scheduled to start May 26 and end on June 1. Pricing of the stocks is set on May 24. Around 70 percent of the IPO shares will be offered to institutional investors.
Prime Infra expects to be listed on the Philippine Stock Exchange on June 8.
Proceeds of the IPO will fund Prime Infra’s projects in sustainable energy, water business, and waste management and sustainable fuels business.
The major assets of the company include 52.16% percent voting rights in listed Manila Water Co.,; 82 percent interest in WawaJVCo Inc., a bulk water supplier to Metro Manila; Prime Energy Resources, whose main asset is the Malampaya Energy XP Ltd; and joint ventures in major solar farms.
The offer will be handled by CLSA Ltd., UBS, BDO Capital, BPI Capital, First Metro Investment, PNB Capital, and RCBC Capital.
Based on its prospectus, Prime Infra saw net income in 2022 drop to P5.5 billion from P10.83 billion in the previous year to mainly to a P9.12 billion gain from acquisition in 2021. Income tax provision nearly quadrupled to P2.76 billion in 2022 compared with P752.5 million in 2021.
Total revenues almost doubled to P28.91 billion in 2022 from P15.15 billion the previous year.
Prime Infra valued its total assets P253.2 billion at the end of last year, up from P186.4 billion in 2021. Total liabilities rose to P179.7 billion, with P138.7 billion considered current, or those settled in cash within a period of one year.
