Citicore takes aim at RE dominance

Citicore Renewable Energy Corp. (CREC) successfully raised P5.3 billion from the successful listing of its maiden public shares on Friday — a much-needed financial boost that will help the company become a leading player in the local power sector. 

At a press conference following its listing ceremony, CREC president Oliver Tan said the company will chart the next five years to become the country’s largest producer of renewable energy.

“We are entrepreneurs. We are not only visionaries, we are also bold entrepreneurs. Therefore, we have bold ambition,”  Tan told reporters. 

“The goal is to become the largest, if not the top three largest power generation companies in the Philippines, not only as a solar developer but also as a power generation company,” he said. 

To date, CREC has 285 megawatts (MW) of installed capacity. 

Tan said CREC is slated to contribute approximately 1,000 megawatts (MW) of ready-to-build/under-construction solar energy capacity in the Philippine energy mix per year in the next five years—equivalent to approximately 5,000 MW by 2028.

CREC completed its offering of 1.78 billion common shares, with a 10 percent over-allotment option of up to 178 million secondary common shares at P2.70 per share. 

As of 7 June, CREC shares listed 8.92 billion common shares with the offering representing 22 percent of its total outstanding shares with a market capitalization of P24.10 billion.

Tan pointed out that the success of CREC’s IPO was partly boosted by the $12.5-million investment of MOBILIST, a special fund manager supported by the government of the United Kingdom.

CREC is MOBILIST’s maiden IPO investment in the country focused on renewable energy transition.

“MOBILIST is one of our anchor IPO investors. We are very honored because this is their first investment. As to the investment size, it is about $12.5 million (approximately P732 million). That’s a significant portion of the IPO offer size,” Tan said. 

About 70 percent of the offer shares were allotted to local and international institutional investors. In comparison, the remaining 30 percent were offered to eligible trading participants on the PSE and local small (retail) investors.

For his part, CREC chairman Edgar Saavedra said: “We are delighted with the outcome of CREC’s initial public offering — a testament to strong investor confidence in our vision, plans, and projects.”

“Based on our experience, the IPO plays a significant role in shaping companies. Our collaboration with the PSE and SEC now extends to three companies — Megawide, CREDIT, and CREC,” he added.

CREC is the third publicly listed company under Saavedra’s leadership.