Citicore Energy REIT Corp. (CREIT) said investor interest in its initial public offering (IPO) is encouraging.
“We are very happy with the turnout of our virtual meetings and the overall positive interest in CREIT among those we have met. Most of the institutions, especially those who have integrated ESG (environmental, social and governance) as part of their investment process, are highly attracted to CREIT’s underlying business, which is renewable energy, and its sustainable angle,” said Ben Thomas Paἠares, Unicapital Inc., president and issue manager for the IPO.
Panares said the book-building period process for the IPO is set to be completed today, January 25, with an offer period between February 2 and 8.
The company also completed the engagement of Professional Stock Transfer Inc., one of the country’s biggest and most established transfer agents, to act as both receiving agent and stock transfer agent for its upcoming IPO.
“We expect … strong interest in the offering, considering its pioneering status as an energy-REIT and a sustainable investment alternative in the renewables sector, among others. We are quite excited to see how this trailblazing issuance from CREIT will shape the REIT market,” said Ed Francisco, BDO Capital president.
CREIT is looking to sell to the public an initial 3.21 billion shares, divided into an initial 2.78 billion primary and secondary shares and another 418.34 million secondary shares covering the oversubscription option, at an offer price of up to P3.15 per share.
The IPO will gross an estimated P10.11 billion.
Of the shares for sale, mother company Citicore Renewable Energy Corp. is selling 2.16 billion, including the greenshoe portion, accruing to the company P6.8 billion.
The company intends to use the proceeds of the primary shares to acquire properties within the Citicore Group.
It plans to use the net proceeds to fund its planned acquisition of the properties owned by Citicore Bulacan and Citicore South Cotabato, which operate solar power plants.
“We are finally closing on our main goal, which is the listing date, and completing all the pre- requisites to ensure a smooth process and transactional flow after receiving the green light from regulators. We hope to receive strong and positive feedback from our investor roadshows and marketing initiatives, which we believe will be key to ensure CREIT’s successful IPO,” said Oliver Tan, CREIT president.
