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Stock Commentary

I thought the CREIT offer period had already started, but I can’t buy it

Merkado Barkada
MB
Omicron variant looms large over the PSE today.
Merkado Barkada

The short answer is that the PSE hasn’t approved the IPO yet. That isn’t to say that the Citicore Energy REIT [CREIT pre-IPO] IPO is in trouble, or that it’s facing additional scrutiny, just that the PSE hasn’t given the final go-ahead yet. The dates that we were all operating off of came from CREIT’s preliminary prospectus which was made public when it applied to the SEC to conduct an IPO. The original dates called for a November 26 to December 3 offer period, with an IPO on December 13. The SEC approved CREIT’s IPO back on November 17, but CREIT will not receive its firm dates until it is given a schedule along with the PSE’s final approval.

Think of the IPO like a flight looking for clearance to take-off (back in the days when NAIA’s runways were clogged with air traffic); nothing is wrong with the plane, and everyone’s ready for the flight, CREIT’s plane just need the air traffic controller to give it clearance to gun the engines.

MB BOTTOM-LINE

There are lots of rumors that the PSE is concerned that there are too many IPOs and listings happening all at once, and that the PSE is holding back some of these equity raising events to spread them out over a greater period of time. Does this run counter to the PSE’s stated intent to encourage more IPOs and issuances to catch up to our SE Asian neighbors in terms of listed companies and market size?

It would certainly seem so. I’m not sure what interests are served by the PSE’s delay. In my mind,  if a company wants to go to market in the middle of a pandemic, right after a REIT IPO and just before a prefs listing, why shouldn’t they do it? I also don’t think that the delay is related to the legal troubles of CREIT’s sister company, Megawide [MWIDE 5.42 3.39%], since rumors of delays have been bubbling up from several other issuances that were not colored by potential legal action. Regardless, CREIT’s preliminary dates have been removed from the MB Calendar, and I’ll put them back in once they’re confirmed by the PSE.

 

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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.

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