Citicore Renewable Energy Corporation (CREC) concluded its initial public offering (IPO) receiving favorable feedback from both domestic and foreign investors.
At a price of Php 2.70 per share, the company successfully closed its offering of 1.785 billion common shares, with a 10% over-allotment option of up to 178,572,000 secondary common shares.
Following the latest offering, CREC now has 8,928,572,143 common shares listed on the Philippine Stock Exchange (PSE). This represents 22% of the company’s total outstanding shares and brought its market capitalization to Php 24 billion at the time of listing.
“We are delighted with the outcome of CREC’s initial public offering – a testament to
strong investor confidence in our vision, plans, and projects…Based on our experience, the IPO plays a significant role in shaping companies and our collaboration with the PSE and SEC now extends to three companies – Megawide, CREIT, and CREC,” said Megawide Chairman Edgar
Saavedra.
Furthermore, 30% of the offer shares were made available to qualified PSE traders and local small (retail) investors, with the remaining 70% reserved for domestic and foreign institutional investors.
With this offering, CREC also caught the eye of domestic and international institutions like the UK Government’s MOBILIST program, a British Investment Partnership program designed to help fund green transmission and infrastructure development in Southeast Asia and the Philippines.
Meanwhile, CREC president and CEO Mr. Oliver Tan highlighted the importance of boosting the firm’s capital to achieve its 5,000 MW renewable energy capacity by 2028.
Tan added that with the investments achieved during the IPO, the firm is positive that it would aid in expanding its green energy portfolio.
After its significant mezzanine credit facility with Pentagreen Capital in 2023, the financing agreement with RCBC, and the sale of some CREIT shares to SM Investments Corporation, the IPO is one of CREC’s largest capital-raising endeavors.
CREC is hoping to add about 1.0 GW of solar energy capacity—roughly 5.0 GW by 2028—per year to the Philippine energy mix in the coming five years.
