PSE OKs P10.1B in February Citicore IPO

MANILA, Philippines—The Philippine Stock Exchange (PSE) has approved a maximum of P10.1 billion initial public offering to be launched in February by renewable energy-themed real estate investment trust pioneer Citicore Energy REIT Corp. (CREIT).

CREIT is set to offer up to 1.047 billion primary common shares plus up to 1.742 billion secondary shares at a price of as much as P3.15 per share. In case of strong demand, there will be an option to upsize the offering by up to 418.34 million shares.

The offering price will be finalized on Jan. 26, while the offering will run from Feb. 2 to 8. The listing on the local bourse will be on Feb. 17, according to an offering circular issued by the PSE on Wednesday (Jan. 19).

Proceeds from the primary offering will be used to acquire properties in Bulacan and South Cotabato while the REIT sponsor—Citicore Renewable Energy Corp. (CREC) and Citicore Solar Tarlac 1 Inc., led by the same group that controls construction and infrastructure firm Megawide Construction Corp.—can recycle as much as P6.8 billion in proceeds from the secondary offer for new projects.

The offering will bring 49 percent of CREIT’s post-IPO shares to public hands, assuming full exercise of the over-allotment option.

Unicapital Inc. and BDO Capital & Investment Corp. are CREIT’s joint global coordinators for the offer. Unicapital will likewise serve as lead underwriter and issue manager, while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp., while Investment & Capital Corporation of the Philippines will act as participating underwriter. The company also engaged CIMB Investment Bank Bhd and CLSA Ltd. as international bookrunners.

To date, CREIT has eight operating solar plants with total capacity of 163 megawatts (MW). It plans to build 1,500MW of new solar capacity in the next five years, of which its attributable capacity will be 1,000 MW.

TSB