Citicore Renewable's IPO hits P12.9 billion

MANILA – Tycoon Edgar Saavedra's Citicore Renewable Energy Corp., the country's second-largest solar generator, is set to launch an initial public offering in March. ) quarter, issuance worth P12.9 billion kicked off the 2024 initial public offerings (IPOs).

The company said in the preliminary agreement that it plans to sell about 2.9 billion shares at a price of 3.88 pesos per share from March 4 to 8 next year, and the proceeds will be used for solar capacity expansion and battery energy storage system (BESS) prospectus.

Saavedra's Citicore Power will sell another 435 million shares for post-IPO price stabilization activities. The listing date on the Philippine Stock Exchange is March 15, 2024.

Citicore Renewable started operations in 2015 and is currently selling 33.2% of its shares to outside investors. This will be Saavedra's third IPO after Megawide Construction Corp. and Citicore Energy REIT Corp.

read: Citicore Renewable Energy prepares for 'blockbuster' IPO

Based on the IPO target price, Citicore Renewable’s post-listing valuation will be close to 39 billion pesos. The prospectus shows that pricing will be finalized on February 28, 2024.

As of September 2023, the company's total installed capacity in Luzon, Visayas and Mindanao was 285.1 MW. It is the second-largest solar portfolio in the country, behind Ayala Group's ACEN Corp.

The prospectus shows that Citicore Renewable also has 6,446 MW of solar projects and 812.5 MW of onshore wind power projects in various stages of development.

“In the short term, from 2024 to 2025, we expect to put into production approximately 2.3GW of total solar installation capacity, and as of September 30, 2023, various projects are in the preparation/under construction stage,” the company said in the filing. middle.

Read: Citicore Group signs 700MW solar module supply agreement

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“In the medium term, from 2026 to 2028, we intend to develop approximately 5GW of total installation capacity, including solar, run-of-river hydro and onshore wind,” it added.

Citicore Renewable said its long-term plans from 2029 include adding approximately 3.1GW of total installation capacity through offshore wind projects.

The company said it has seven offshore wind service contracts, although there is no formal regulatory framework for offshore wind to date.

UBS Group AG (Singapore) has been appointed as exclusive global coordinator and joint bookrunners with BDO Capital & Investments Corp.

read: New assets boost Citi REIT income

Citicore Renewable aims to raise P10.76 billion in net proceeds, 85% of which will be used for solar capacity expansion until 2025.

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In the first nine months of 2023, Citicore's renewable energy revenue grew 30% to P2.62 billion, while net profit reached P323 million, down from P458.8 million in the same period in 2022.

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