CITICORE Energy REIT Corp. (CREIT) deferred its listing at the Philippine Stock Exchange (PSE) due to “voluminous transactions arising from the huge number of retail and individual investors.”
In a statement on Wednesday, the company said the strong investor demand for the P6.4-billion initial public offering (IPO) of the country’s first energy-focused real estate investment trust (REIT) slowed its processing time.
CREIT’s market debut was initially scheduled Feb. 17. It has yet to confirm a new listing date as of press time.
“We are grateful to the overwhelming reception of investors, owing also to the extensive market education conducted, which further increased appreciation for REITs as a new asset class,” CREIT President and Chief Executive Officer Oliver Y. Tan said.
The company said all shares allotted for its institutional, trading participants, and local small investors (LSIs) tranches were oversubscribed.
“In as much as the underwriters wanted to accommodate all interested investors, the strong orders for CREIT’s IPO from local and international institutions and more than 5,000 retail investors simply outnumbered the total shares offered to the public,” Unicapital, Inc. First Vice-President for Corporate Finance Pamela Louise Q. Victoriano said.
“The underwriters nonetheless exerted efforts to distribute the shares as widely as possible to a broad investor base to hopefully result to better liquidity and more active trading,” she added.
CREIT said the local small investors tranche of the offer was oversubscribed by 124.09%. The company received a demand of 270.745 million shares for 218.182 million shares allocated for the LSI tranche.
“For the LSI investors who were not able to participate in the country’s first energy REIT or received partial allocations, rest assured that refunds for those who placed and paid for their orders but were not allocated are being promptly processed by the Underwriters and the Receiving Agent,” Mr. Tan said.
CREIT sold 2.509 billion shares for P2.55 apiece. Based on projected earnings, the company is expected to have a dividend yield of 7% in 2022 and 7.4% in 2023.
The company said it is looking to implement a dividend payout of at least 95% of its distributable income for the preceding year.
SOURCE: BusinessWorld
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