CREC sets lower final offer price for IPO

SAAVEDRA-LED Citicore Renewable Energy Corp. (CREC) has finalized the price for its initial public offering (IPO) at P2.70 per share, down from its initial offer price of up to P3.88 per share.

The energy company is set to offer up to 1.79 billion common shares with an additional 267.86 million shares for overallotment, CREC said in a regulatory filing on Thursday.

It has rescheduled its planned P7.9-billion IPO from May 31 to June 7, with the offer period now set from May 20 to May 24.

“CREC should do well over time, and the discounted IPO price looks like a fair entry for investors. We are keen to see the performance of this IPO given the current tepid state of the local stock market,” Chinabank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message.

He said that despite closing lower than its IPO at its market debut, OceanaGold Philippines, Inc. is now trading “well above that level,” which could inspire investors in CREC.

“We remain optimistic about the prospects for renewable energy in the Philippines. Government policies are supportive of the sector, and there is a growing market preference for clean and sustainable energy,” Mr. Colet said.

Regina Capital Development Corp. Head of Sales Luis A. Limlingan said that “investors may want to consider this, given the success of the previous IPO. There may also be indications of potential growth following the SM Group’s recent entry, which accounts for less than a 30% stake.”

SM Investments Corp. invested P5 billion in CREC’s subsidiary Citicore Energy REIT Corp. (CREIT), the first real estate investment trust listing with a focus on renewable energy.

On its debut in 2022, CREIT’s shares closed at P2.84 apiece, higher by 11.37% than its IPO price of P2.55.

For 2023, the company’s attributable net income rose by 12% to P1.4 billion. Gross revenues grew by 31% to P1.8 billion, driven by the expansion of its green asset portfolio.

At the local bourse on Thursday, shares in CREIT went up by P0.01 or 0.35% to close at P2.84 each. — Sheldeen Joy Talavera