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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Ed Saavedra turns to capital market to fund RE projects: Citicore REIT’s P10B IPO gets SEC nod

A real estate investment trust (REIT) unit of Citicore Renewable Energy Corp. has been cleared to launch its initial public offering estimated to fetch as much P10 billion.

Backed by Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1, Citicore Energy REIT (CREIT) will offer to the public as much as 3.206 billion shares comprising 1.047 primary shares, 1.741 billion secondary shares and an oversubscription option of up to 418.34 billion shares, at a maximum price of P3.15 each

CREIT, an affiiate of bilyonaryo Edgar Saavedra’s Megawide Corp., expects to net up to P3.17 billion from the primary offer, which will be used for the acquisition of properties in Bulacan and South Cotabato.

Proceeds from the secondary offer could amount to P6.61 billion, assuming the overallotment option is fully exercised. These funds shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.

The offer period will run from November 26 to December 3 in time with the listing of the shares scheduled on December 13.

CREIT aims to focus on income-generating renewable energy real estate properties, including land and properties used for harnessing power. The company owns the Clark solar power plant operating on a land leased from the Clark Development Corp. for a period of 25 years or until 2039.

It has mandated Unicapital Inc. and BDO Capital & Investment Corp. as joint global coordinators for the offer.

Unicapital will also serve as lead underwriter and issue manager while BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp. while Investment & Capital Corporation of the Philippines will act as participating underwriter.

The company also engaged CIMB Investment Bank Bhd and CLSA Ltd. as international bookrunners.

SOURCE: Bilyonaryo

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