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Philippines’ Citicore Renewable Seeks $231.9 Million IPO for Solar Power Expansion
by
Byungho Lim
Philippines-based Citicore Renewable Energy Corp, a major player in the country’s solar power sector, has officially applied to an initial public offering (IPO), seeking to raise up to 12.94 billion pesos ($231.9 million).
The IPO involves the sale of approximately 3.335 billion shares, including an over-allotment option, priced at up to 3.88 pesos ($0.07) per share. The funds generated through the IPO will be used to finance new solar power plants, aligning with the Philippines’ broader efforts to transition towards cleaner and more sustainable energy sources.
Citicore Renewable Energy Corp. (CREC) stands as a prominent solar power producer in the Philippines and aims to execute its IPO in the first quarter of 2024. The company’s filing with the Securities and Exchange Commission (SEC) outlines the plan to offer 2.9 billion common shares. As part of the IPO strategy, an additional 435 million shares will be offered by Citicore Power, led by Saavedra, for post-IPO price stabilization activities.
Citicore Renewable Energy Corp, founded in 2015, has swiftly become a key player in the renewable energy sector, operating ten solar assets with a collective gross installed capacity of 285 megawatts (MW) as of September-end. The company’s project pipeline includes plans for 6,446 MW in solar power generation and an additional 812 MW in onshore wind.
The listing date on the Philippine Stock Exchange is slated for March 15, 2024. This marks Saavedra’s third IPO, following the successful listings of Megawide Construction Corp. and Citicore Energy REIT Corp.
The IPO’s ultimate timing, final offer price, and the definitive number of offered shares remain contingent on prevailing market conditions, a detail emphasized by Citicore in its statement. The IPO process has engaged the services of UBS and BDO Capital to oversee the proceedings, ensuring a smooth transition to public trading.
The Philippines, confronted with the challenges of climate change, is on a trajectory to enhance its renewable energy contribution to the power mix. The target is to elevate renewables from 21% in 2020 to 35% by 2030 and further to 50% by 2040. The goal contrasts with the dominance of coal, which accounted for nearly 60% of the power mix in 2020.
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