The Philippine Stock Exchange Inc. (PSE) has approved the initial public offering (IPO) of Citicore Renewable Energy Corp. (CREC), a pure-play renewable energy (RE) producer in the Philippines.
CREC said it will set the price on its shares on March 6 and offer period from March 11 to 15. It will be listed on the PSE on March 22.
The company received the Notice of Approval (NOA) issued by the last January 29. The Securities and Exchange Commission issued the pre-effective approval for CREC’s IPO last January 17.
The IPO consists of an offer of up to 2.9 billion primary common shares, and an over-allotment option of up to 435 million secondary common shares, at an offer price of up to P3.88 per share. Total proceeds, including the overallotment option, would amount to P12.93 billion.
Proceeds from the IPO will be used to partially fund CREC’s capital expenditures and pipeline development for solar energy plants and battery energy storage system, as well as general corporate purposes.
“I welcome the decision of CREC to tap the equities market to raise capital since RE projects are very much needed these days given that we are racing against time to address climate issues,” PSE President and CEO Ramon S. Monzon said in a statement.
CREC has set aside 10 percent of its offered shares for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website or mobile application.
The company has a pipeline of renewable energy projects in the Philippines in line with its goal of adding approximately 1 gigawatt of ready-to-build/under construction solar energy capacity each year through 2027.
CREC is looking at developing 1,000 megawatts of additional capacity annually in the next five years.
The sponsor company for real estate investment trust, Citicore Energy REIT Corp., said in its prospectus that it has over 5 gigawatts of project pipelines in varying stages of development.
CREC currently operates 10 solar power plants, and one micro-grid solar rooftop systems with total aggregate capacity of 284 MWpdc across the country.
These solar facilities include Citicore Solar Bulacan Inc., CS Bataan Inc., CS Tarlac 1 Inc., CS Tarlac 2 Inc., Clark Solar Farm Inc., CS South Cotabato Inc., CS Ceb Inc., CS Negros Occidental Inc., Arayat-Mexico Solar Farm (a joint venture with ACEN Corp) and solar rooftop systems in Bataan.
The company also ventured into the development of run-of-river hydro in Ilaguen, Isabela. It has secured wind energy service contracts for at least seven off-shore wind projects.
“In 2021, we completed the construction of solar rooftops, which delivered 6.5MW in solar energy capacity, and commissioned an additional 115.7MW solar energy capacity in 2022.
From 2021 until September 30, 2023, we almost doubled our total installed capacity, having developed, operated and maintained ten operating solar assets with a combined gross installed capacity of 285.1MW1 as of September 30, 2023,” the company said.
The company is the vehicle used by Citicore Power Inc. to pursue RE platform investments in greenfield and brownfield projects, and manage the operation of power generation projects for solar, hydro and wind technologies.
CPI is a direct subsidiary of Citicore Holdings Investment Inc., the parent company of Megawide Construction Corp.