MANILA, Philippines—Citicore Energy REIT Corp. (CREIT), the first renewable energy-themed real estate investment trust in the country, has priced its offering at P2.55 per share, finalizing the size of its stock market debut at P6.39 billion as it also reduced the number of offer shares.
This offering price will translate to a dividend yield of 7 percent this year and 7.46 percent in 2023, assuming that Citicore will meet income levels projected in its prospectus.
CREIT’s initial public offering was reduced by 19 percent from the earlier maximum price of P3.55 per share, based on the company’s advisory to the Philippine Stock Exchange on Thursday.
The company also announced a 10-percent reduction in its offer shares to 2.509 billion from about 2.789 billion previously.
The offering now consists of 1.047 primary shares and 1.134 billion secondary shares. The secondary offering was reduced from 1.74 billion previously while the over-allotment option was likewise trimmed to 327.27 million from 418.34 million previously.
The IPO will run from Feb. 2 to 8, while tentative listing date is scheduled on Feb. 17.
“The company has decided to price the first energy REIT in the country at P2.55 per share with implied dividend yield of 7 percent of projected 2022 earnings to provide more upside to the public investors who will be its long-term partners in the journey to net zero carbon future,” CREIT president Oliver Tan said on Thursday (Jan. 27).
“At this price level, the sponsor has decided to increase its stake in the company post-IPO from 57.4 percent to 66 percent (assuming without the over allotment portion), by reducing the offer size…as the sponsor believes in the long-term value creation of the company,” he added.