CREIT climbs 11%, closes at P2.84 on market debut - BusinessWorld Online

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CITICORE Energy REIT Corp. (CREIT) finishes 11.37% higher on its first day at the Philippine Stock Exchange (PSE), closing at P2.84 apiece from its IPO price of P2.55. READ:

“The issue climbed to as high as P2.94 during the first few minutes of trading, but eventually retraced and moved sideways above the P2.78 area,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message on Tuesday.

The company is projected to have a dividend yield of 7% this year based on projected earnings and 7.4% by 2023. CREIT sold 2.509 billion shares for P2.55 apiece. It sold 1.05 billion primary common shares, while sponsor Citicore Renewable Energy Corp. sold 1.13 billion secondary shares and an overallotment of 327.27 million shares.These will be added to the company’s renewable energy property portfolio, which includes the Clark property, Armenia property, Toledo property, Dalayap property, and the Silay property. The five properties are being leased to solar power plant operators under the Citicore group.

“It really took us several challenges, several sleepless and tireless nights just to make this happen because the structure of the REIT law in the Philippines is really geared to real estate so we only really needed to make so many workarounds just to make the structure to be able to work,” CREIT Chairman Edgar V. Saavedra said during the hybrid briefing.

The company engaged BDO Capital and Investment Corp., PNB Capital and Investment Corp., Investment & Capital Corporation of the Philippines, Unicapital, Inc., CLSA Ltd., and CIMB Investment Bank Bhd as its underwriting syndicate. “The Philippine REITs now constitute 1.4% of our GDP . This is just the beginning. This powerful financial instrument holds much promise to help boost our economic recovery,” Mr. Dominguez said during the listing ceremony.Meanwhile, CREC has earmarked P3 billion this year for its existing projects’ capital expenditure and up to P70 billion in the next five years for projects in its pipeline.Tan, who also heads CREC, said in the press briefing.

 

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