CITICORE Energy REIT Corp. (CREIT) on Thursday said it would use the over-allotment option to increase its total issue size to P6.4 billion.
“The option shares of 327,273,000 common shares will be fully exercised,” CREIT’s stabilizing agent BDO Capital & Investment Corp. said in a Notice of Exercise of Overallotment Option filed to the exchange.
CREIT initially offered 2.18 billion common shares with the over-allotment option at offer price of P2.55 apiece.
“The reason behind CREIT’s usage of the overallotment option is due to strong demand from investors,” CREIT President Oliver Y. Tan said a Viber message.
It can be recalled that the company has deferred its market debut earlier due to “voluminous transactions.” On its listing day on Feb. 22, CREIT ended 11.37% higher, closing at P2.84 apiece from its IPO price of P2.55.
The country’s first energy-focused REIT sold 2.509 billion shares for P2.55 apiece. It sold 1.05 billion primary common shares, while sponsor Citicore Renewable Energy Corp. (CREC) sold 1.13 billion secondary shares and an over-allotment of 327.27 million shares.
It was said that the net proceeds from the IPO will be used to purchase properties in Bulacan and South Cotabato.
On March 9, CREIT reported that its board of directors approved to purchase land parcels from Citicore Solar Bulacan, Inc. with an aggregated area of 253,880 square meters (sq.m.) in Bulacan for P1.75 billion and a 79,997 sq.m. of land worth P753.8 million from Citicore Solar South Cotabato, Inc.
CREIT targets to boost its power portfolio to 1,500 megawatts (MW) in the next five years, from the existing 145 MW, to meet growing demand for renewable energy.
The company’s shares at the exchange went down by five centavos or 1.88% on Thursday to close at P2.61 apiece. — Marielle C. Lucenio