Citicore eyeing February listing of clean energy-focused REIT

 

Renewable energy-themed real estate investment trust (REIT) pioneer Citicore Energy REIT Corp. (CREIT) expects to list by February, aiming to raise P10.1 billion to scale up the group’s agro-solar farm operations in order to become the country’s largest by next year.

In a recent interview, CREIT president Oliver Tan said his group was preparing for predeal meetings and investor roadshows next month and targeting to price the initial public offering (IPO) by Jan. 26.

Assuming that all regulatory approvals and permit to sell have been obtained by then, CREIT’s public offering is targeted to run from Feb. 2 to 8 next year, while listing on the Philippine Stock Exchange (PSE) is targeted for Feb. 17.

 

Option to upsize

The Securities and Exchange Commission has already cleared CREIT’s registration of up to 1.047 billion primary common shares plus up to 1.742 billion secondary shares to be offered to the public at a maximum price of P3.15 per share. In case of strong demand, there will be an option to upsize the offering by up to 418.34 million shares.

CREIT has set aside a stabilization fund equivalent to 15 percent of the offering, Tan said.

Proceeds from the primary offering would be used to acquire properties in Bulacan and South Cotabato while the REIT sponsors—Citicore Renewable Energy Corp. and Citicore Solar Tarlac 1 Inc., led by the same group that controls construction and infrastructure firm Megawide Construction Corp.—could recycle as much as P6.8 billion in proceeds from the secondary offer for new projects.

 

Property-oriented

The offering would bring 49 percent of CREIT’s post-IPO shares to public hands, assuming full exercise of the overallotment option. Before this, all five REITs that have listed on the PSE are all property-oriented.

Unicapital Inc. and BDO Capital & Investment Corp. are CREIT’s joint global coordinators for the offer. Unicapital will likewise 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 Corp. of the Philippines will act as participating underwriter.

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

To date, CREIT has eight operating solar plants with total capacity of 163 megawatts.

“What’s exciting is we have a robust pipeline. We will be building 1,500 MW of new solar in the next five years,” Tan said.

Out of the total projected portfolio, CREIT will have an attributable capacity of 1,000 MW.

 

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