Monday, June 10, 2024

Citicore Renewable Energy Corporation Shines Bright on the Philippine Stock Exchange


COURTESY: Citicore Renewable Energy Corporation (CREC)


You know what they say, "a rising tide lifts all boats." Well, Citicore Renewable Energy Corporation (CREC) is definitely riding that tide as they successfully listed on the Philippine Stock Exchange (PSE) on June 7, 2024. This momentous event marks a significant milestone for the company and the renewable energy sector in the Philippines.

CREC dazzled investors by completing its offering of a whopping 1,785,715,000 common shares, priced at PhP2.70 per share. There was even a 10% overallotment option of up to 178,572,000 secondary common shares! In total, 8,928,572,143 common shares hit the market, representing 22% of CREC’s total outstanding shares, with a market capitalization of PhP24,107,144,786.10 at the time of listing. Talk about making a grand entrance!


The strong investor confidence in CREC was palpable. An impressive 70% of the offer shares went to local and international institutional investors, while the remaining 30% found their way to eligible trading participants on the PSE and local small (retail) investors. This diverse investor base underscores the broad appeal of CREC's vision and projects.

Chairman Edgar Saavedra couldn't hide his excitement, stating, “We are delighted with the outcome of CREC’s initial public offering - a testament to strong investor confidence in our vision, plans, and projects.” He emphasized how the IPO is a game-changer, shaping companies and extending their collaboration with the PSE and SEC to three companies – Megawide, CREIT, and CREC. The success of this latest listing is a big pat on the back for everyone involved.


The IPO didn't just catch the eye of domestic investors; it also attracted reputable international institutional investors. One standout supporter is the UK Government’s MOBILIST programme. This initiative by the British Investment Partnership aims to boost infrastructure development and green transition in the Philippines and Southeast Asia. MOBILIST’s investment in CREC is their first IPO investment in the Philippines focused on renewable energy transition. That’s a pretty big deal!

CREC President and CEO, Mr. Oliver Tan, highlighted the importance of the capital raised, “With the investments made during the IPO, we have gained even more confidence in our ability to develop and expand our green energy portfolio. These investments are integral to the country’s transition to a cleaner form of power.” CREC's goal is crystal clear: contribute approximately 1.0 gigawatt (GW) of ready-to-build/under-construction solar energy capacity per year, aiming for a total of 5.0 GW by 2028. That’s some serious green energy!


The Securities and Exchange Commission (SEC) Chairperson and CEO, Emilio Aquino, was all smiles during the listing ceremony. He expressed his optimism, “The Commission is very hopeful that today's listing of Citicore's common shares will further propel the development of renewable energy projects. We hope that it remains steadfast in its dedication to innovation and sustainability.”

This IPO is one of CREC’s biggest capital-raising activities, following significant financial moves last year, including a landmark mezzanine loan facility with Pentagreen Capital and financing arrangements with RCBC. All these efforts are geared towards developing CREC’s pipeline of projects, contributing to the Philippines' renewable energy landscape.


Behind this successful IPO was a powerhouse underwriting syndicate. UBS led the charge as the sole global coordinator and joint bookrunner, with BDO Capital and Investment Corporation playing the role of joint bookrunner and domestic lead manager. The co-lead underwriters included CLSA Limited, PNB Capital Investment Corporation, RCBC Capital Corporation, and SB Capital Investment Corporation. AlphaPrimus Advisors provided financial advice to CREC, ensuring every move was strategic and well-calculated.



In summary, Citicore Renewable Energy Corporation's successful listing on the Philippine Stock Exchange is more than just a financial achievement; it's a beacon of hope for renewable energy in the Philippines. With strong investor confidence, international support, and a clear roadmap for growth, CREC is set to light up the future with clean, sustainable energy. So, keep your eyes on CREC – they’re definitely a stock worth watching!

No comments:

Post a Comment

A Green Revolution: Pertamina NRE and CREC’s Energy Odyssey in Southeast Asia

A New Dawn in Renewable Energy Imagine waking up to a world where renewable energy isn't just an alternative; it's the norm. This mi...