Citicore Renewable Energy Corp. (CREC) is looking at pocket areas for solar power plants in the country.
Edgar Saavedra, CREC chairman, said the company is looking at developing 1,000 megawatts of additional capacity annually in the next five years or a total of 5,000 MW as it embarks on an initial public offering (IPO) to raise an estimated P12.94 billion in funds.
Oliver Tan, CREC president, the company is preparing to spend at least P35 billion this year alone for the construction of renewable energy (RE) projects.
“We’re looking at 10 sites under construction. Four in Batangas, one in Pampanga, two in Quezon, two in Pangasinan and one in Negros,” Tan said.
CREC said these projects are scheduled to be completed before the end of the year.
Citing the huge potential in the energy sector, Saavedra said CREC is focusing mostly on areas where there is demand for small capacities of 50 to 60 megawatts of power.
“You’re talking about going to 12 to 15 small sites for the 1,000 megawatts (target),” said Saavedra.
CREC on Wednesday gained the approval of the Securities and Exchange Commission on the IPO.
The company is looking to offer to the public 3.34 billion shares, divided into an initial 2.9 billion and another 435 million for the greenshoe option, at an offer price of up to P3.88 per share.
Without the over-allotment portion, CREC can raise as much as P11.25 billion.
“Based on the latest timeline submitted by Citicore to the Commission, the IPO will run from March 4 to 8. The company targets to list its shares on the Main Board of the Philippine Stock Exchange on March 15,” the SEC said.
“Citicore expects to net more than P10.71 billion from the primary offer for capital expenditures and pipeline development for solar energy power plants, and general corporate purposes,” it added.
CREC tapped UBS AG as sole global coordinator and joint bookrunner, and BDO Capital & Investment Corp. as domestic lead manager and joint bookrunner for the IPO.
The sponsor company for real estate investment trust (REIT), Citicore Energy REIT Corp., it has over 5 gigawatts (GW) of project pipelines in varying stages of development.
CREC currently operates 10 solar power plants, and one micro-grid solar rooftop systems with total aggregate capacity of 284 MWpdc across the country.
The company also ventured into the development of run-of-river hydro in Ilaguen, Isabela. It has secured wind energy service contracts for at least seven off-shore wind projects. – Jed Macapagal and Ruelle Castro
