Citicore Renewable Energy IPOs to a flat finish

Citicore Renewable Energy Corp [CREC 2.70 unch; 100% avgVol] [link] opened its trading life on the PSE on Friday up 1.8% with the first trades going through at P2.75/share. The per-share price ticked down slightly through the day and finished at the intraday low of P2.70/share, which was CREC’s IPO offer price. A little over 25 million shares traded hands, which is approximately 1% of the total public float. CREC has a stabilization fund.

MB BOTTOM-LINE: The PSE’s second IPO is in the books! CREC has been raising money like crazy to achieve its ambitious goal of having 5 gigawatts of capacity by 2028; this IPO is only the latest fundraise in a sequence of raises that started in September of last year with the US$100 million financing that it negotiated. CREC continued the spree with a P20 billion deal with RCBC [RCB 21.75 ?0.2%; 68% avgVol] and a surprise sale of P5 billion worth of its subsidiary, Citicore Renewable Energy REIT [CREIT 2.82 ?0.3%; 401% avgVol] to SM Investments [SM 840.00 ?1.3%; 40% avgVol]. CREC is cashing up to build. CREC’s President, Oliver Tan, said that CREC’s goal is to “become the largest, if not the top three largest power generation companies in the Philippines, not only as a solar developer but also as a power generation company.” So far their actions and words are in alignment. 

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