Citicore Energy REIT Corp. (CREIT) has obtained a license from the Securities and Exchange Commission (SEC) for its plan to raise funds through an initial public offering (IPO).
In a statement, CREIT said the sales license was granted by the SEC on Wednesday.
The company will offer 2,181,819,000 common shares with an over-allotment option of up to 327,273,000 common shares at an offer price of P2.55 per share.
Post-IPO, CREIT’s resulting public float will be 38.3%, assuming full exercise of the over-allotment option. It will exceed the required public participation of 33.33% based on the REIT’s revised Implementing Rules and Regulations (IRR).
CREIT is the nation’s first energy REIT or real estate investment trust.
“The company believes that more affordable pricing will allow a wider range of investors to participate in CREIT’s value proposition, especially since these people and institutions will be our long-term partners,” said Oliver Tan. , President and CEO of CREIT.
“What we want to offer in CREIT is sustainable investment in various aspects – economic (for the investor), social (for communities) and environmental (towards a zero carbon future),” he added. .
Following the offering, CREIT expects to pay a dividend of at least 95% of its distributable income for the prior year, subject to the availability of unrestricted retained earnings and compliance with applicable laws, which represents a premium on the required dividend payout of at least 90% based on the IRR of the REIT.
At an IPO price of P2.55/share, CREIT said its expected earnings-based implied dividend yields for 2022 and 2023 are 7.0% and 7.4%, respectively.
CREIT shares will be offered to the public from February 2 to 8 and are scheduled to be listed on February 17.
“We would also like to express our deepest gratitude to our regulators, the SEC and the Philippine Stock Exchange, as well as our underwriting syndicate, for their continued guidance and assistance in ensuring that this landmark offering materializes,” said said Tan.
The company plans to use the net proceeds from the main offering to acquire properties within the Citicore Group, in particular the properties held by Citicore Solar Bulacan Inc. in Bulacan and Philippines Solar Energy One Inc. in South Cotabato.
CREIT brought in BDO Capital & Investment Corp. and Unicapital Inc. as joint global coordinator and lead underwriters for the company, along with PNB Capital and Investment Corp. as major local underwriters.
He also appointed CIMB Investment Bank Bhd and CLSA Limited as international bookrunners, and the Investment & Capital Corporation of the Philippines. —News VBL, GMA