The Philippine Stock Exchange approved the P10.1-billion initial public offering plan of Citicore Energy REIT Corp., the country’s first energy-focused real estate investment trust, company officials said Wednesday.
CREIT plans to sell up to 3.2 billion common shares at a price of P3.15 apiece.
The IPO will enable the company to raise up to P10 billion in proceeds, which it will use to acquire properties in Bulacan and South Cotabato provinces.
CREIT is the real estate investment trust company owned by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1 Inc. The proposed offering will run from Feb. 2 to 8, with a target listing date of Feb. 17.
“CREIT is pleased to inform you that our application, both to the SEC and the PSE for the first Energy REIT, an alternative asset class combining the benefits of a stable and sustainable investment—for the environment, our communities and our children’s future—has been approved,” said CREIT president and chief executive Oliver Tan in a statement
Aside from the PSE approval, the company received a pre-effective approval on Jan. 13 from the Securities and Exchange Commission which was based on updated third quarter of 2021 financial and operating results.
The company received on Nov. 16, 2021 an initial pre-effective clearance from the SEC based on its registration statement filing bearing first-half 2021 numbers.
“We are grateful for the insights and wisdom of both the SEC and PSE, for approving a landmark REIT product, paving the way for diversification of REIT products, ultimately benefitting the investing public,” said Tan.
Unicapital Inc., the issue manager, and BDO Capital & Investment Corp. are the joint global coordinators. PNB Capital and Investment Corporation and Investment & Capital Corporation of the Philippines are the local underwriters while CIMB Investment Bank Bhd and CLSA Limited are the international bookrunners.
The company said it offers a unique value differentiation, with a green asset portfolio anchored on investing in and for the future.
“This business model, we believe, is cycle-resistant as solar power generation is an essential industry, further supported by government programs, and has a clear plan for long-term growth. With the search for attractive returns, alongside a strong and effective ESG advocacy as criteria for a sound market investment, CREIT comes in as a practical alternative,” Tan said.
The Citicore Group has a pipeline of 1,500-megawatt solar plant capacity in the next five years.