Oliver Tan firms up PH’s first energy REIT listing; Citicore IPO size cut to P6.4B to give investors higher yield
Business

Oliver Tan firms up PH’s first energy REIT listing; Citicore IPO size cut to P6.4B to give investors higher yield

Citicore REIT (CREIT) slashed the size of its initial public offering by more than a quarter and priced its shares 23.5 percent lower than the maximum target, reducing IPO proceeds to P6.4 billion.

In a letter to securities regulators, CREIT president Oliver Tan said the company cut its offer size to 2.509 billion shares (consisting of 1.047 billion primary shares, 1.13 billion and secondary shares plus 327.27 million shares for the over-allotment option) from the originally planned 3.2 billion shares.

The offer price for the country’s first energy-focused REIT has been finalized at P2.55 apiece, providing a dividend yield of seven percent based on projected earnings for 2022.

Tan said CREIT scaled down the IPO price to “provide more upside to the public investors who will be its long-term partners in the journey to net zero carbon future.”

At an offer price of P2.55 per share, CREIT’s sponsor Citicore Renewable Energy Corp. decided to jack up its stake in the company tpost-IPO to 66 percent from 57.4 percent. This reflects the parent firm’s confidence in the long-term value creation of CREIT.

Unicapital Inc. is the issue manager and joint global coordinator, joint Bookrunners and lead local underwriter.

The offer period will run from Feb 2 to 8 with the listing of the shares set for Feb. 17.

Citicore REIT (CREIT) slashed the size of its initial public offering by more than a quarter and priced its shares 23.5 percent lower than the maximum target, reducing IPO proceeds to P6.4 billion.

In a letter to securities regulators, CREIT president Oliver Tan said the company cut its offer size to 2.509 billion shares (consisting of 1.047 billion primary shares, 1.13 billion and secondary shares plus 327.27 million shares for the over-allotment option) from the originally planned 3.2 billion shares.

The offer price for the country’s first energy-focused REIT has been finalized at P2.55 apiece, providing a dividend yield of seven percent based on projected earnings for 2022.

Tan said CREIT scaled down the IPO price to “provide more upside to the public investors who will be its long-term partners in the journey to net zero carbon future.”

At an offer price of P2.55 per share, CREIT’s sponsor Citicore Renewable Energy Corp. decided to jack up its stake in the company tpost-IPO to 66 percent from 57.4 percent. This reflects the parent firm’s confidence in the long-term value creation of CREIT.

Unicapital Inc. is the issue manager and joint global coordinator, joint Bookrunners and lead local underwriter.

The offer period will run from Feb 2 to 8 with the listing of the shares set for Feb. 17.

 

Leave a Comment

18 − fourteen =

This site uses Akismet to reduce spam. Learn how your comment data is processed.