Posted on: Jun 22, 2022 09:53 am.
Last updated on: June 22, 2022, 10:09 am.
As Enrique Razon continues to boost the Philippines’ casino industry, the country’s second richest man is working to advance another of his big ventures. He wants to go public with Prime Infrastructure Capital, his infrastructure and investment company, and is preparing a planned initial public offering (IPO).
If Razon succeeds, the Philippines could see its largest initial public offering (IPO) this fiscal year. According to Reuters, Prime Infrastructure intends to raise up to PHP 28 billion ($515 million) by selling 1.93 billion shares. This includes an over-allotment option at a maximum price of PHP 14.60 (US$0.27) per share.
IPO prices in Filipino filings are usually higher than final sale prices. As a result, there may be a reduction in the number of shares available before the IPO begins.
Razon Eye’s IPO in October
If regulators approve the initiative, it may target October as the listing period for the Philippine Stock Exchange. This exchange has already seen seven listings this year.
Razon, 62, has a net worth of $6.7 billion. He made his fortune through casino resort group Bloomberry and global port operator International Container Terminal Services.
This month, Razon reported that he had acquired a majority stake in the South China Sea gas field from Dennis Uy. The latter is a fellow tycoon and supporter of former President Rodrigo Duterte. Uy went on a sales spree after the last election and sold a number of assets.
In addition, Razon acquires a stake in Uys Clark Grand Leisure Corp. The company is in the process of building a property in Pampanga, but currently has no plans to build a casino. Last year it returned its license. However, Razon could always push for reinstatement.
Prime Infrastructure is currently building the largest solar power plant in the world. It will have a capacity of 2,500 to 3,500 megawatts (MW) and a storage system capable of storing 4,000 to 4,500 megawatt hours of energy. That’s enough energy to power 656,000 homes, according to the Solar Energy Industries Association.
Bloomberry on the rebound
Earlier in the month, Bloomberry received a boost from industry analysts. Morgan Stanley analysts raised their earnings estimates after the company reported better performance for the first quarter of the year.
Bloomberry could see its 2022 EBITDA (earnings before interest, taxes, depreciation and amortization) reach 71% of its 2019 performance by the end of the year. This implies a grand total of around PHP 14 billion ($267.6 million).
This year, Bloomberry turned a profit for the first time since the COVID-19 pandemic began. The company posted a net loss of PHP780.8 million ($14.35 million) for the same quarter of its most recent fiscal year. This followed a loss of PHP1.3 billion (US$23.98 million) in the previous quarter.
In February, the Philippines opened its borders to vaccinated tourists. As a result, the country’s casinos were given permission to reopen at full capacity as the government relaxed its anti-COVID-19 measures.
Morgan Stanley analysts predict that Bloomberry will exceed its EBITDA from 2019 to 2024. The operator’s projected revenue could top PHP 25.2 billion (US$481.5 million), up 127% from 2019 levels.