Citicore Renewable Energy Corp. (CREC) is set to jumpstart the initial public offering (IPO) season in 2024 after securing the Philippine Stock Exchange’s (PSE) approval.
“I welcome the decision of CREC to tap the equities market to raise capital since RE projects are very much needed these days given that we are racing against time to address climate issues,” PSE president and chief executive Ramon Monzon said.
CREC’s offer period is tentatively scheduled on March 11 to 15, 2024, while listing date is on March 22, 2024.
It will sell up to 2.9 billion common shares, with an over-allotment option for another 435 million common shares at a maximum price of P3.88 apiece.
The final offer price will be determined on March 6, 2024 following the completion of its book-building process.
The renewable energy firm will trade under the ticker symbol “CREC”.
The company will allot up to 70 percent of the offer shares to overseas investors and 20 percent to trading participants.
It set aside 10 percent of its offered shares for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website or mobile application.
The company said it would use the IPO proceeds to partially fund capital expenditures and pipeline development for solar energy plants and battery energy storage system (BESS) and general corporate purposes.
CREC has a pipeline of renewable energy projects in the Philippines in line with its goal of adding 1.0 gigawatts of ready-to-build/under construction solar energy capacity each year through 2027.
It had a total capacity of 285.1 megawatt as of end-September 2023, accounting for 19 percent of country’s installed renewable capacity of 1.5 gigawatts.
The company tapped UBS AG as sole global coordinator and joint bookrunner and BDO Capital & Investment Corp. as domestic lead manager and joint bookrunner for the IPO.
The PSE earlier said it was looking at six IPOs and P175 billion worth of equity deals this year.