Citicore Energy REIT asset.

Citicore Energy REIT has slashed its initial public offering (IPO) price in a bid to widen its shareholder base.

The reduction was made ahead of the REIT’s offer period, which runs from 2 -8 February.

The IPO price has been reduced from PHP3.15 to PHP2.55.

Citicore Energy REIT is the Philippines’ first energy REIT, and the country’s sixth REIT overall.

It has an initial portfolio of seven solar farms across the archipelago.

The REIT is offering 2,181,819,000 common shares with an over-allotment option of up to 327,273,000 common shares at an offer price of PHP2.55 each.

This is down significantly from the earlier indicative price of PHP3.15 per unit.

At its IPO price, the implied dividend yields based on projected 2022 and 2023 earnings are 7.0% and 7.4%, respectively.

Net proceeds from the IPO will be deployed towards acquiring more solar forms from the Citicore Group

Citicore Energy REIT is scheduled to list on the PSE on 17 February.

By Shariffa Al-Habshee

Shariffa joined REITsWeek in 2017, and monitors Asia-Pacific REITs for the publication.