Citicore Energy REIT Corp. yesterday officially started its initial public offering (IPO) which will end on February 8.
The company said it has formally received its permit to sell (PTS) from the Securities and Exchange Commission (SEC) for the fund- raising activity.
The company is looking to offer to the public 2.51 billion shares at an offer price of P2.55 apiece, divided into an initial 2.18 billion shares and another 327.27 million shares covering the greenshoe option.
The IPO will gross P6.39 billion it plans to acquire properties within the Citicore Group. In particular, 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.
CREIT is the country’s first energy real estate investment trust (REIT). CREIT said that the Citicore Group pioneered the Agro-Solar Social concept that promotes the shared goals of “clean power generation, agricultural production, and socio-economic development.”
“The company believes that a more affordable pricing will allow a broader set of investors to participate in CREIT’s value proposition, especially since these individuals and institutions will be our long-term partners. What we want to offer in CREIT is a sustainable investment in various aspects – economical (for the investor), social (for the communities), and environmental (towards a zero-carbon future),” said Oliver Tan, CREIT president.
Post-offer, CREIT plans to implement a dividend payout of at least 95 percent of its distributable income for the preceding year (subject to availability of unrestricted retained earnings and compliance with applicable laws), “which is a premium over the required dividend payout of at least 90 percent based on the REIT IRR (internal rules and regulations),” Tan said.
“At an IPO price of P2.55/share, CREIT’s implied dividend yields based on projected 2022 and 2023 earnings are 7 percent and 7.4 percent, respectively, based on the final REIT plan,” Tan said.
Unicapital Inc., will serve as the issue manager, which together with BDO Capital & Investment Corp. will serve as joint global coordinators. PNB Capital and Investment Corp. and Investment & Capital Corporation of the Philippines, meanwhile will joint Unicapital and BDO Capital as local underwriters while CIMB Investment Bank Bhd and CLSA Limited will serve as international bookrunners.
CREIT eyes to list with the Philippine Stock Exchange by February 17.