Citicore, Philippines’ first energy-focused REIT, clears IPO hurdles

By Ramon Royandoyan – January 19, 2022 | 12:58am
from Philstar.com

The renewable energy-centred offering came from CREIT’s parent company, Megawide Construction Corp., owned and founded by Edgar Saavedra.

MANILA, Philippines — It’s all systems go for the stock market debut of Citicore Energy REIT after the real estate investment trust company cleared all listing hurdles.

In a notice on Wednesday, the Philippine Stock Exchange said it approved the maiden share sale of the company, which would be traded under the “CREIT” ticker once listed on the main PSE board on February 17.

This new REIT offering — the sixth of its kind in the Philippines — will put up 2.8 billion common shares for sale at an offer price of P3.15 each. It is a renewable energy-centered initial public offering under the same ownership group of Megawide Construction Corp., a listed builder owned and founded by businessman Edgar Saavedra.

CREIT’s IPO also includes an option to sell an additional 418.3 million shares if there is robust investor demand. Including this overallotment option, the company is expected to raise P10.1 billion, with the offer period scheduled on February 2 to 8.

Breaking down the offer, CREIT will sell to the public 1 billion primary shares, proceeds from which will be used to buy property assets in Bulacan and South Cotabato. The newly-acquired land, in turn, will be leased to solar power plants within the Citicore Group, namely, Citicore Solar Bulacan Inc. and Philippines Solar Energy One Inc. in South Cotabato.

This makes CREIT the Philippines’ first non-office building REIT.

Meanwhile, proceeds from the sale of up to 1.7 billion secondary shares will all go to CREIT’s sponsor, Citicore Renewable Energy Corp., which must reinvest the money in its properties in the Philippines.

As mandated by law, CREIT shall redistribute to shareholders at least 90% of its annual distributable income as dividends.