IPO OF RENEWABLE ENERGY-THEMED REIT OK’D

The Securities and Exchange Commission (SEC) has cleared the initial public offering (IPO) worth as much as P10.1 billion to be launched by Citicore Energy REIT Corp. (CREIT), the first renewable energy-themed real estate investment trust (REIT) to tap the local stock market.

The SEC also approved the IPO worth up to P1.77 billion planned by coffee shop and restaurant chain Figaro Coffee Group Inc. as well as the preferred shares offering of as much as P3 billion by upscale property developer Arthaland Corp.

CREIT is a REIT sponsored by Citicore Renewable Energy Corp. (CREC) and Citicore Solar Tarlac 1 Inc., led by the same group that controls construction and infrastructure firm Megawide Construction Corp.

CREIT was cleared to offer up to 1.047 billion primary common shares plus up to 1.742 billion secondary shares at an offer price of as much as P3.15 per share. In case of strong demand, there will be an option to upsize the offering by up to 418.34 million shares.

Proceeds from the primary offering will be used to acquire properties in Bulacan and South Cotabato. Meanwhile, REIT sponsor CREC can recycle as much as P6.8 billion in proceeds from the secondary offer for new projects. The offering will bring 49 percent of CREIT’s post-IPO shares to public hands, assuming full exercise of the overallotment option.

Subject to the approval by the Philippine Stock Exchange, CREIT’s offering will run from Nov. 26 to Dec. 3 while listing on the main board was tentatively set for Dec. 13.