The Securities and Exchange Commission has given its go-signal to the initial public offering (IPO) of Citicore Energy REIT Corp. (CREIT).
In its en banc meeting, the agency approved the registration statements of CREIT covering 6.54 billion common shares.
CREIT is a real estate investment trust (REIT) sponsored by Citicore Renewable Energy Corp. (CREC) and Citicore Solar Tarlac 1 Inc.
Citicore Holdings Investment Inc. is the parent company of Megawide Construction Corp.
The IPO will include up to 1.04 billion primary shares priced at up to P3.15 per share and 1.74 billion in secondary shares to be offered by selling shareholder CREC. It will also offer an oversubscription option of up to 418.33 million 9,000 shares. The shares will be listed and traded on the main board of the Philippine Stock Exchange (PSE).
CREIT expects to net up to P3.17 billion from the primary offer, which will be used for the acquisition of properties in Bulacan and South Cotabato.Meanwhile, CREC will receive the entire proceeds from the secondary offer, which could amount to P6.61 billion, assuming the overallotment option is fully exercised. This shall be reinvested in the Philippines, pursuant to the Real Estate Investment Trust Act of 2009.
New investors will corner 49 percent of CREIT’s issued and outstanding shares, while existing shareholders will retain 51 percent, assuming the full exercise of the overallotment option.
The offering will run from November 26 to December 3, in time for the shares to be listed on the PSE on December 13, according to the latest timetable submitted to the SEC.
CREIT, formerly Enfinity Philippines Renewable Resources Inc., aims to focus on income-generating renewable energy real estate properties, including land and properties used for harnessing power. The company owns the Clark solar power plant operating on land leased from the Clark Development Corp., pursuant to a 25-year lease which will expire in September 2039.
According to its REIT plan, the company’s renewable energy property portfolio consists of the leased properties. These include the lease of the 25 hectares of land for the Clark solar power plant in Pampanga and parcels of land leased to solar power plant operators, comprising of the company-owned 14 hectares of land in Brgy. Armenia in Tarlac, leasehold rights over the 73 hectares of land Toledo in Cebu, 43 hectares in Silay in Negros Occidental and 10 hectares of land in Dalayap in Tarlac.
These lands were leased to CREC, Citicore Tarlac 1, Citicore Cebu, Citicore Negros Occidental and Citicore Tarlac 2 Inc. The company said it will expand its renewable energy property portfolio by acquiring an additional two parcels of land from Citicore Bulacan of about 25.3 hectares and Citicore South Cotabato of about 8 hectares. These firms area wholly owned indirect subsidiaries of CREC through its ownership of Cleantech Solar Holdings Inc. and Sikat Solar Holdco Inc., respectively.
CREIT tapped Unicapital Inc. and BDO Capital and Investment Corporation as joint global coordinators for the offer. Unicapital will also serve as lead underwriter and issue manager. BDO Capital will serve as lead local underwriter alongside PNB Capital and Investment Corp., while Investment and Capital Corporation of the Philippines will act as participating underwriter and CIMB Investment Bank Bhd and CLSA Limited as international bookrunners