Thursday, January 20, 2022

CREIT: PH’s first energy REIT gets greenlight from PSE to proceed with P10B IPO

Megawide Construction Corp.’s sister company Citicore Energy REIT Corp. (CREIT) has received approval from the Philippine Stock Exchange’s listing committee, clearing the last major hurdle for its initial public offering.

Led by its president and CEO Oliver Tan, CREIT aims to raise as much as P10.1 billion from an offering of up to 1.047 billion primary shares and 1.742 billion secondary shares at a maximum price of P3.15 per share. The company has also set aside 418.34 million shares to cover the overallotment option in case of strong demand.

The final offer price will be known on January 26 while the offering has been scheduled on February 2 to 8 with the listing tentatively set for February 17.

Tan said CREIT has 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.

Proceeds from the IPO will be used to acquire properties in Bulacan and South Cotabato, which will be leased to solar power plants of Citicore subsidiaries.

 Citicore Group is looking at building 1,500 megawatts of solar power capacity in the next five years.

Unicapital Inc. and BDO Capital & Investment Corp. are the joint global coordinators for CREIT’s IPO.

Unicapital is lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp..

CIMB Investment Bank Bhd and CLSA Ltd., meanwhile, have been tapped as international bookrunners for the issue.

SOURCE: Bilyonaryo

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