Citicore Renewable Energy Corp. or CREC, a pure renewable energy player, is joining the bandwagon of local companies tapping the equities market to raise fresh funds to support their network and portfolio build-up. 

The company filed its registration statement with the Securities and Exchange Commission or SEC for a proposed initial public offering of its common shares on Monday.

CREC's registration statement showed that the company targets to issue up to 2.9 billion shares at P3.88 apiece, with an over-allotment option of up to 435 million additional shares.

P11.25B possible

Assuming a final offer price of P3.88 per share, excluding proceeds from the exercise of the over-allotment option, CREC'S maiden offering may yield P11.25 billion.

CREC said the proceeds from the IPO plan will be earmarked for the company and its subsidiaries' capital expenditures and pipeline development.

However, CREC clarified that the final offer timing, number of offer shares, and allocation of proceeds will depend on market conditions and added that the offer is still subject to necessary regulatory approvals.

"A draft of the preliminary offering circular has been filed with the registration statement for review and approval by both the Securities and Exchange Commission and The Philippine Stock Exchange," it added.

Among other developments, CREC recently announced that it will be integrating an additional 7.5-megawatt or MW of renewable energy from its Tarlac Solar Power Plants into the franchise area of Clark Freeport Zone in Pampanga. 

The company recently signed a power supply contract with Cogent Energy, the local electricity supplier or LRES arm of Clark Electric Distribution Corp. or CEDC. 

The agreement will run until December 2024 — or by the time CREC's upcoming 60-MW Bato Solar Power Power Plant in Palauig, Zambales becomes operational.

Once running, CREC said its partnership will transition into a 10-year power supply contract, which will cover 30 MW of the electricity needs of CEDC LRES.