Business Tycoon Enrique Razon to Venture Into Renewable Energy

Business tycoon and second richest man in the Philippines, Enrique Razon plans on bringing public his company, Prime Ingrastructure Capital Inc. to generate funds for renewable energy projects.

Prime Infrastructure plans to sell 1.76 billion common shares at ₱14.60 each based on the filing documents released by the Securities and Exchange Commission (SEC).

In the chance that there would be strong investor interest in the initial public offering, the company plans on selling 175.6 million shares more to meet the demand. Including the overallotment option, Prime Infrastructure would reel in ₱28 billion in net proceeds, possibly being the largest IPO of the year in the country.

Prime Infra Chief Executive Officer Guillaume Lucci was quoted in a Bloomberg article saying that the Philippines is “probably not where we should be in terms of power supply demand,”

“We’re probably not where we should be in terms of water availability and sanitation, or probably not where we should be in terms of waste management and climate. If you consider all that as an investor, it’s perfectly logical to invest into the Philippines and Prime Infra,” he also adds.

In the total funds generated in the IPO, ₱23 billion would be for Prime Infrastructure’s energy business and ₱3.5 billion would be for the water segment of the company. The remaining ₱1.1 billion will go to waste and sustainable fuels projects of the company.

The IPO is estimated to be from October 3 to 7 and the debut on the local stock market around October 12.

Source: Philstar