Philippine News Agency | SEC clears IPO of Citicore
Posted on November 17, 2021
The Securities and Exchange Commission (SEC) has considered favorably the initial public offerings (IPO) by Citicore Energy REIT Corp. (CREIT) and Figaro Coffee Group, Inc., as well as the preferred share offer by Arthaland Corporation.
In its meeting on November 16, the commission en banc resolved to render effective the registration statements of CREIT covering 6,545,454,004 common shares; Figaro Coffee Group of 5,011,005,003 common shares; and Arthaland covering up to 6 million series D preferred shares, subject to certain remaining requirements.
CREIT is a real estate investment trust (REIT) sponsored by Citicore Renewable Energy Corporation (CREC) and Citicore Solar Tarlac 1, Inc.
The IPO will include up to 1,047,272,000 primary shares priced at up to PHP3.15 per share, plus 1,741,660,000 secondary shares to be offered by selling shareholder CREC, which has an oversubscription option of up to 418,339,000 shares.
The shares will be listed and traded on the Main Board of the Philippine Stock Exchange (PSE).
CREIT expects to net up to PHP3.17 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 PHP6.61 billion, assuming the overallotment option is fully exercised.
This shall be reinvested in the Philippines, pursuant to the revised implementing rules and regulations of Republic Act No. 9856, or 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 over-allotment option.
As mandated by law, CREIT shall redistribute to shareholders at least 90 percent of its annual distributable income as dividends. The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses, and other items in accordance with internationally accepted accounting standards.
It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within one year from the date of sale.
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.
Formerly Enfinity Philippines Renewable Resources, Inc., CREIT 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 Corporation, pursuant to a 25-year lease that will expire in September 2039.