Citicore Renewable Energy Corporation is planning to sell up to P12.94 billion of its shares through a planned initial public offering (IPO) in March next year to fund its capital expenditures and pipeline development.

In its preliminary prospectus filed with the Securities and Exchange Commission (SEC), the firm said it is planning a primary offer of up to 2.9 billion common shares plus an overallotment option of up to 435 million secondary shares at an offer price of up to P3.88 per share.

The offer shares, which will be listed at the main board of the Philippine Stock Exchange (PSE), will account for 28.9 percent of Citicore’s outstanding capital after the IPO and up to 33.2 percent if the overallotment option is exercised.

Of the net proceeds from the firm shares amounting to P10.76 billion, P9.15 billion will be allotted for capital expenditures and development of solar energy plants in 2024 and 2025 while P1.61 billion will be for capex and development of battery energy storage systems (BESS) next year.

Citicore will not benefit from the proceeds from the over allotment option amounting to P1.69 billion as these will be go to the selling shareholder Citicore Power Inc.

Citicore has tapped UBS AG, Singapore branch to be its sole global coordinator and joint bookrunner while BDO Capital & Investment Corporation has also been named as joint bookrunner and domestic lead manager.

Up to 580 million or 20 percent of the Firm IPO shares will be offering through the trading participants of the PSE while 10 percent or 290 million shares will be offered through the local small investors program.

The remaining 2.03 billion shares or 70 percent of the Firm shares are being offered for sale to institutional investors overseas and to qualified buyers and other investors in the Philippines.

Citicore is a pure-play renewable energy producer with a sizeable platform focused on and committed to the development and operation of renewable energy projects in the Philippines. 

It began operations in 2015 through parent company, CPI. One year after it began operations, Citicore completed three greenfield solar projects, which contributed a total installed capacity of 103.0MW of renewable energy to the Philippine energy mix. 

Since then, it has scaled up operations and, as of Sept. 30, 2023, developed, operated and maintained ten operating solar assets with a combined installed capacity of 285.1MW. 

Its generated capacity accounted for approximately 19 percent of the total solar installed capacity in the country, making it the power producer with the second largest solar portfolio in the Philippines in terms of installed capacity as of Dec. 31, 2022.