BIZ BUZZ: IPO curtain-raiser rethinks timing
It’s no secret that the market is looking at tycoon Edgar Saavedra’s Citicore Renewable Energy to jumpstart an initial public offering (IPO) revival in 2024. Given its size of P12.9 billion, that one offer is roughly the size of all three IPOs in the past year combined.
But given the expected timing of interest rate cuts later in 2024 and the upcoming Chinese New Year, we’re hearing that Citicore Renewable might push the IPO further back from its original target date in March to the second quarter.
Nevertheless, interest in the IPO remains high, especially from overseas investors, after Citicore’s management team held a pre-roadshow in Hong Kong, Singapore and Kuala Lumpur, our sources said.
Of note was how these foreign markets positively viewed investments in the Philippine energy sector and its strong push for cleaner power sources such as solar and wind energy.
Citicore Renewable is currently the No. 2 solar power producer in the country but we understand that their goal is to eventually become the market leader by a wide margin. As we say here, abangan! —Miguel R. Camus
Wanted: Funding for Mindanao railway
The Department of Transportation is not giving up on its dream to flesh out the 1,544-kilometer Mindanao Railway Project (MRP), which has been dealing with some financial hiccups.
To recall, funding for the first phase of the major railway project with China fell through as the latter did not act on the country’s loan application. Transportation Secretary Jaime Bautista said the agency was working with the Department of Finance to find new financing sources.
“We decided to pursue phase one of the MRP despite withdrawal of prior funding commitment from the government of China. While looking for funding sources, various preconstruction activities show we are not dropping the project,” Bautista said.
The agency is now in the process of acquiring parcels of land located along the alignment of the railway. It also has identified resettlement sites for the residents displaced by the construction.
The first phase of the project, with a price tag of P81.6 billion, seeks to reduce travel time from Tagum (Davao del Norte) to Digos (Davao del Sur) to just about an hour from 3.5 hours currently.
The entire MRP is designed to cater to major cities such as Davao, General Santos, Cotabato, Zamboanga and Surigao, among others. —Tyrone Jasper C. Piad
