CREC may move IPO to Q2


Citicore Renewable Energy Corporation’s (CREC) initial public offering (IPO) might be moved to the second quarter of this year in accordance with the lowering of interest rates in that quarter.

In a report by Philippine Star, the Securities and Exchange Commission (SEC) had already approved the registration statement of the corporation, stating the offer of 10 billion shares in January.

CREC is expecting to garner more than Php 10.71 billion from the primary offer. The profits from the offer would be used for capital expenditures (CAPEX) as well as for the advancement of solar energy power plants. 

At a maximum price of Php 3.88 per share, Citicore plans to offer approximately 2.9 billion common shares. And for over-allotment, the offer would also comprise an additional 435 million outstanding common shares. 

Following the timeline given by CREC, the public offering was supposed to take place from March 4 to 8. Meanwhile, the listing of the shares on the main board of the Philippine Stock Exchange (PSE) was plotted on March 15.

However, the postponement to the second quarter is also aimed at allowing the corporation time to finalize some remaining regulatory and documentary requirements, as well as to conform with the US Federal Reserve, which hinted that the first-rate cut might happen around May.

Additionally, UBS AG was tapped as the sole global coordinator and joint bookrunner, with BDO Capital & Investment Corporation as the domestic lead manager and joint bookrunner for the IPO.