Stock Commentary

Citicore Renewables officially moves IPO to next quarter

Merkado Barkada
Citicore Renewables officially moves IPO to next quarter

Citicore Renewable Energy Corp. [CREC] [link] gave notice to the exchange that it “decided to adjust the indicative date of the Offer from March 2024 to the 2nd quarter of 2024.” CREC explained that it “recently received inquiries from other institutions with regard to participation in the IPO”, and that CREC is “carefully evaluating the offers from the various institutions.” CREC is the parent company of Citicore Energy REIT [CREIT 2.69 unch], and is a major component of the Megawide [MWIDE 3.22, down 0.6%] group of companies owned by Edgar Saavedra. The original IPO offer period was scheduled to begin on March 11, with a listing set for March 22.

MB bottom-line: Last week, the rumors were swirling about CREC’s delay, but the reason the sources gave was the need to complete documentation and align the date better with the expected start of the US Federal Reserve’s “pivot” to lowering rates. Looks like the rumor mill was right about CREC’s plan to delay its IPO to Q2, but (maybe) wrong about why. I don’t exclude the chance that the delay is intended to push the transaction back until there’s some better inflation fight news AND to allow CREC the breathing room to negotiate with some late arrival anchor suitors. It’s practically right on schedule for CREC and its underwriters to have been speaking with potential anchor investors as part of its originally scheduled process, so if there was a substantial development either in terms of the number or significance of the potential anchor(s), then it makes sense for it to have bubbled up around this time. Is this good news or bad news? We’ll have to wait and see.


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