Stock Commentary

Citicore Renewable IPO pushed back to June 7

Merkado Barkada
Citicore Renewable IPO pushed back to June 7
Image by Merkado Barkada
Merkado Barkada

Citicore Renewable Energy Corporation [CREC 3.88 pre-IPO] [link] pushed its IPO back one week to June 7, with a revised offer period between May 27 and May 31. This is the second time that CREC’s IPO has been rescheduled. CREC was originally intended to list in March, but the listing was pushed back to the end of May after sticky inflation prevented central banks from lowering rates. CREC raised P5 billion from its sale shares in its subsidiary, Citicore Renewable Energy REIT [CREIT 2.85, up 0.7%; 107% avgVol], to SM Investments [SM 887.00, up 0.2%; 163% avgVol] back on March 31. The offer is 1.786 billion common primary shares at a maximum price of P3.88/share. Together with the overallotment option, the total IPO is worth up to P7.97 billion.

MB bottom-line: I don’t have any insider information about why the IPO was delayed a second time. I know that the PSE is usually hesitant to schedule IPOs too closely together for fears of oversaturating the market with new equity issuances, and given how heavy the OceanaGold PH [OGP 12.36, down 1.1%; 31% avgVol] listing has been so far, perhaps the PSE and CREC together decided that it might be worth it to get a little (more) space between OGP and CREC’s listing just to be sure. Edgar Saavedra’s group has been clear the whole time of its intent to list CREC in Q2, so a reschedule by one week to June 7 doesn’t seem like anything other than a bit of fine-tuning. Not sure how deeply we can read into anything. Just excited to get a look at a new IPO.


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