Citicore Renewable's P12.9-B IPO successful | Inquirer Business

MANILA, Philippines — Tycoon Edgar Saavedra’s Citicore Renewable Energy Corp. is one step closer to its 2024 initial public offering (IPO) after receiving approval from the U.S. Securities and Exchange Commission (SEC) for its P12.9 billion listing. One step closer.

The corporate regulator announced approval of the registration of 10.04 billion common shares of the company in a statement on Wednesday. Before the IPO can go through, a launch signal from the Philippine Stock Exchange is required.

Citicore Renewable is the country's second-largest solar power producer, behind Ayala Group's ACEN.

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

read: Citicore Renewable kicks off 2024 IPO season with P12.9-B offer

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

“Citicore expects to net more than 10.71 billion pesos from the main offer for capital expenditures and pipeline development of solar power plants and for general corporate purposes,” the SEC said in a statement on Wednesday.

Renewable Energy Portfolio

In addition to solar and battery storage, Citicore Renewable outlined in its prospectus long-term plans to build 3.1 gigawatts of offshore wind energy projects.

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

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

read: Citicore Group signs 700 MW solar module supply agreement

Citicore Renewable is the first of at least six IPOs in 2024, with the PSE expected to raise about P40 billion. The exchange’s overall financing target for this year is P175 billion, a 24% increase from 2023.

Nicky Franco, head of research at stockbrokerage Abacus Securities, said “high-profile” IPOs such as the Sy family's SM REIT and tycoon Enrique Razon Jr.'s Prime Infrastructure Capital Inc. are unlikely to complete this year.

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“We think SM REIT and Prime Infra will wait [to launch their IPOs] Until 2025,” Franco said at a briefing with customers last Friday.

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