CREC slashes IPO price to P2.70 per share
By Jenniffer B. Austria – May 23, 2024, 8:05 pm
from manilastandard.net
Citicore Renewable Energy Corp., the power generation arm of businessman Edgar Saavedra, priced its initial public offering (IPO) at P2.70 per share, lower by 30.4 percent than the high end of its initial price range of P3.88.
At this price level, CREC will raise P5.4 billion in proceeds from the sale of 1.76 billion common shares and an overallotment option of 267.86 million shares,
The offer period will run from May 27 to May 31, with the tentative listing and start of trading on the Philippine Stock Exchange on June 7, according to the company’s preliminary prospectus.
This will make CREC as the second IPO this year after mining firm OceanaGold Philippines.
CREC has a pipeline of renewable energy projects in line with its goal of adding approximately 1 gigawatts of ready-to-build/under construction solar energy capacity each year through 2027.
CREC secured a financing arrangement with Rizal Commercial Banking Corp. (RCBC) last month for up to P20 billion loan for the construction of multiple solar power plant projects with a combined installed generating capacity of at least 600 megawatts to 1 GW.
The initial tranche involves P9 billion arranged by RCBC Capital Corp.
The project financing structure is believed to be the first-of-its-kind in the Philippines, which covers various project portfolios instead of the typical per-project financing structure.
The proceeds of the initial funding tranche will be applied towards CREC’s development of certain solar power plant projects in Batangas, Pampanga, and Negros Occidental.
The proceeds of subsequent tranches will be applied towards the completion of additional solar power projects in or additional generating capacity from CREC’s pipeline of projects in various stages of development.
The solar power plant projects in Batangas, Pampanga and Negros Occidental are integral to CREC’s target of contributing 1GW of ready-to-build/under construction solar energy capacity per year over the next five years.
CREC expects commercial operation dates for the first and second phases of the Negros Occidental project in September 2024 and 2025, respectively.
Meanwhile, the company expects the commercial operation dates for the first and second phases of each of the Batangas and Pampanga projects are in December 2024 and 2025, respectively.
