Last December, Citicore Renewable Energy Corporation (CREC) announced that it had filed a registration statement with the Securities and Exchange Commission (SEC) relating to the proposed initial public offering of its common shares.
Under the terms of the offer, CREC plans to issue up to 2,900,000,000 shares, at a price of up to Php3.88 per share, and an over-allotment option of up to 435,000,000 additional shares may be exercised.
CREC is building a 680 MW solar project in Batangas, calling it the company’s largest PV project to date. Photo shows a 72 MW Arayat-Mexico Solar Farm by Citicore and ACEN joint venture that came online in March 2022 in the Philippines. (IMAGE CREDIT: https://crec.com.ph)
Assuming a final offer price of Php3.88 per share and assuming a final offer of 2,900,000,000 firm shares, a maximum amount of gross proceeds of Php11.25 billion may be raised from the offer, excluding proceeds from the exercise of the over-allotment option.
According to the CREC, net proceeds from the offer will be utilized for capital expenditures and pipeline development of the company and its subsidiaries.
The timing of the offer, final offer price, final number of offer shares, and allocation of the proceeds will depend on market conditions as well as the circumstances surrounding the offer and will still be subject to securing the necessary regulatory approvals.
SEC okays CREC’s proposal
In its January 16 meeting, the Securities and Exchange Commission (SEC) considered favorably the initial public offering (IPO) of Citicore Renewable Energy Corporation for as much as P11.252 billion.
The Commission En Banc has resolved to render effective the registration statement of Citicore covering 10,042,857,143 common shares, but this is subject to the company’s compliance with certain remaining requirements.
Citicore will offer to the public up to 2,900,000,000 common shares at a maximum price of P3.88 apiece. The offer will include an additional 435,000,000 outstanding common shares for overallotment.
Based on the latest timeline submitted by Citicore to the Commission, the IPO will run from March 4 to 8.
The company targets to list its shares on the Main Board of the Philippine Stock Exchange on March 15.
Citicore expects to net more than P10.71 billion from the primary offer for capital expenditures and pipeline development for solar energy power plants, and general corporate purposes.
The company engaged UBS AG as the sole global coordinator and joint bookrunner, and BDO Capital & Investment Corporation as the domestic lead manager and joint bookrunner for the IPO.
Citicore is a pure-play renewable energy platform that directly and through its subsidiaries and joint venture manages a diversified portfolio of renewable energy generation projects, power project development operations and retail electricity supply in the Philippines.
The CREC, directly and through its subsidiaries and joint venture, manages a diversified portfolio of renewable energy generation projects, power project development operations and retail electricity supply. CREC is also the sponsor of the Philippine’s first renewable energy REIT, Citicore Energy REIT (CREIT). For more information, please visit www.crec.com.ph.