Citicore Energy REIT Corporation (CREIT) has cut its initial public offering (IPO) price to P2.55 per share from a maximum of Php3.15.
CREIT said that the reduced price, which comes with an implied dividend yield of seven percent of its projected earnings for 2022, would provide more upside to public investors in the long run.
Overall, CREIT aims to raise Php6.4 billion from the IPO.
In a notice submitted to the Philippine Stock Exchange on Thursday, CREIT reduced its offer size to 2.51 billion shares from 3.21 billion it earlier planned to sell. The company particularly slashed its secondary offer size to 1.13 billion from 1.74 billion, and its oversubscription offer size to 327 million from 418 million. CREIT will still offer 1.05 billion primary shares.
Citicore Renewable Energy Corporation, one of CREIT’s sponsors, will be offering the secondary shares.
The net proceeds of the IPO, which will last from February 2-8, will be used to acquire properties in Bulacan and South Cotabato. The target listing date remains on February 17.
CREIT, the first energy-related real estate investment trust (REIT) in the country, as well as its underwriters are expecting strong investor interest in the upcoming offer.