Citicore Renewable Energy Corp. has slashed the price of its initial public offering by 30 percent to only P2.70 per share from its indicative price of P3.88 apiece.
At this price, the company will raise P9.02 billion, down from P10.71 billion at the market’s second IPO exercise for the year.
Selling starts next week up to the end of May on 3.34 billion shares divided into an initial 2.9 billion plus an over-allotment consisting of 435 million shares. Listing at the PSE is set on 7 June.
CREC will use the proceeds to fund capital expenditures, the pipeline development of its solar power projects and for general corporate purposes.
CREC is developing 1,000 megawatts of additional capacity each year and the next five years.
CREC, the sponsor company of real estate investment trust Citicore Energy REIT Corp., has over 5 gigawatts of project pipelines in varying stages of development.
The company operates 10 solar power plants and one micro-grid solar rooftop system with aggregate capacity of 284 MWpdc across the country.
The 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 Cebu Inc., CS Negros Occidental Inc., Arayat-Mexico Solar Farm, which is a joint venture with with ACEN Corp., and the solar rooftop system in Bataan.
The company also ventured into developing run-of-river hydro in Ilaguen, Isabela and secured wind energy service contracts in at least seven offshore wind projects.
CREC tapped UBS AG as sole global coordinator and joint bookrunner, and BDO Capital and Investment Corp. as domestic lead manager and joint bookrunner for the IPO.
CLSA Ltd. participates as international co-lead underwriter while PNB Capital and Investment Corp., RCBC Capital Corp. and SB Investment Capital Corp. join as domestic co-lead underwriters.
Investment and Capital Corp. of the Philippines also serves as participating underwriter.
