The Philippines' First Energy REIT Gets Greenlight from SEC and PSE
Citicore Energy REIT Corporation (CREIT) has been given the greenlight to debut on the stock exchange. CREIT received approval from the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) for its initial public offering. The offer period is from February 2 to 8, with a target listing date scheduled for February 17.
While this is the country’s sixth REIT, it's the first Energy REIT, which CREIT president and CEO Oliver Tan describes as “an alternative asset class combining the benefits of a stable and sustainable investment.”
Priced at P3.15 per share, CREIT’s initial public offering’s primary offer will sell 1.047 billion common shares, with a secondary offer of 1.741 billion shares and an over-allotment option of 418.3 million shares.
In total, CREIT could raise P10.1 billion from its IPO. Proceeds from the primary offer will be used to buy properties in Bulacan and South Cotabato to build more solar power plants. Unlike other REITs, CREIT’s IPO will be directed toward land instead of office space. Proceeds from the secondary offer will be reinvested into CREIT by REIT sponsor Citicore Renewable Energy Corp. (CREC).
“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,” Tan explained.
CREIT is 51 percent owned by CREC, which is in turn wholly owned by Citicore Power Inc. (CPI). CPI is under Citicore Holdings Investment Inc., which also owns 33 percent of publicly listed infrastructure company Megawide Construction Corp.