The Securities and Exchange Commission (SEC) said Wednesday it approved the P12.9-billion initial public offering (IPO) of Citicore Renewable Energy Corp. (CREC).
Based on the registration statement filed with the SEC, CREC plans to sell up to 2.9 billion common shares at a maximum price of P3.88 apiece. The offer includes additional 435 million outstanding common shares in overallotment option.
The offer period will be from March 4 to 8, after which the shares will be listed on the main board of the Philippine Stock Exchange on March 15.
Post-IPO, CREC is expected to have a 33.22-percent public float, assuming the overalloment shares are bought.
The company plans to sell up to 70 percent of the offer shares to overseas investors and 20 percent to trading participants. The remaining 10 percent will be set aside for small local investors.
Citicore said it would use the net proceeds from the offering for capital expenditures and pipeline development of solar energy power plants and general corporate purposes.
It tapped UBS AG as the sole global coordinator and joint bookrunner and BDO Capital & Investment Corp. as the domestic lead manager and joint bookrunner for the IPO.
Citicore is a pure-play renewable energy platform that manages a diversified portfolio of renewable energy generation projects, power project development operations and retail electricity supply in the Philippines.
It is second largest solar energy generator in the country in terms of installed capacity. As of end September 2023, CREC had total installed capacity of 285.1 megawatts, accounting for 19 percent of country’s installed capacity of 1.5 gigawatts.
It also has a pipeline of renewable greenfield energy projects with a gross capacity of 6,446 MW in solar power generation and 812.5MW in onshore wind power generation in various stages of development.
CREC expects its capital expenditures to increase significantly over the next couple of years to fund the commissioning of its Green Energy Auction Program 2-awarded projects and invest in other renewable energy technologies.
It also aims to contribute about 1 GW of solar energy capacity per annum until 2027, contributing to national target of increasing renewable energy capacity in the Philippine energy mix.