Citicore Energy REIT Corporation (CREIT) has moved its listing date to next week, specifically February 22 at the latest, from its initially planned schedule this Thursday.
This comes as CREIT received an oversubscription level of 124.09% after completing its offer period last week. A total of 218.2 million shares were allocated during its initial public offering (IPO), but orders for 270.7 million shares came in from institutions, trading participants, and local small investors (LSIs). CREIT’s IPO price was pegged as Php2.55 per share.
“In as much as the underwriters wanted to accommodate all interested investors, the strong orders for CREIT’s IPO from local and international institutions and more than 5,000 retail investors simply outnumbered the total shares offered to the public,” Unicapital Inc.’s First Vice President for Corporate Finance Pamela Louise Victoriano said in a statement.
The underwriters nonetheless exerted efforts to distribute the shares as widely as possible to a broad investor base to hopefully result to better liquidity and more active trading,” she added.
Unicapital is the IPO’s Issue Manager and Joint Global Coordinator, Joint Bookrunner and Lead Local Underwriter.
“We are grateful to the overwhelming reception of investors, owing also to the extensive market education conducted, which further increased appreciation for REITs as a new asset class. The projected dividend yield based on projected 2022 and 2023 earnings of 7.0% and 7.4%, respectively, (based on the Final REIT Plan) – the highest among the existing REITs – also energized investors to invest in CREIT, being the first REIT also to be listed in the Year of the Tiger,” said CREIT President and CEO Oliver Tan.
According to Investopedia, a real estate investment trust (REIT) is a company that owns, operates, or funds income-generating forms of real estate. Patterned after mutual funds, REITs pool together capital gathered from investors, who can earn dividends from real estate investments without buying, managing, or financing actual properties.
CREIT will be issuing refunds for LSIs who were not given shares in the IPO.
Meanwhile, CREIT’s sponsor and major tenant, Citicore Renewable Energy Corporation (CREC) renewed its power supply agreement (PSA) with Shell Energy Philippines (SEPh) to supply clean and renewable energy to users.
“We are happy to have this strengthened partnership with CREC as we provide cleaner energy to our customers,” said SEPh President Bernd Krukenberg.
Last year, SEPh signed a deal with Citicore to source 20 megawatts (MW) of renewable energy from the latter’s solar plant in Mariveles, Bataan.
CREC currently owns and operates eight solar farms in the country, generating a combined power of 163MW. It is looking to expand its portfolio by 1,500MW in the next five years, which could be infused into CREIT.