Regulator clears more IPOs, follow-up offer

The SECURITIES and Exchange Commission (SEC) said on Wednesday it “looks favorably” on the initial public offerings (IPO) of Citicore Energy REIT Corp. (CREIT) and Figaro Coffee Group, Inc., as well as tracking off(FOO) of Arthaland Corp.

Analysts said investor appetite for these offactions may depend on the Fifinal price and further easing of lockdown restrictions, as the pandemic continues to weigh on sentiment.

“It all comes down to the final price. In general, however, [the] time seems [be] good since market sentiment has been a bit more bullish as evidenced by trading activity and current levels of PSEi (Philippine Stock Exchange Index), ”said Regina Capital Development Corp. Sales Director. , Luis A. Limlingan, in a Viber message.

Timson Securities, Inc. stock trader Darren Blaine T. Pangan said there had been IPO fatigue seen in US markets earlier this year.

“We may also have to observe how investor appetite for new listings develops in the coming months.ffers, ”he said.

Some investors may be interested in diversifying their portfolio with CREIT’s offering, since it is the Fifirst energy-focused real estate investment trust (REIT).

“CREIT can offst investors an opportunity to further diversify their portfolio given that it is positioned as the Fifirst energy-related REIT to be offered in the local market, ”Pangan said in a separate Viber post.

CREIT looks for offer 1.05 billion primary shares for P3.15 each, with an over-subscription option of up to 418.34 million shares.

If the over-subscription option is exercised, the company could raise up to 4.62 billion pesos. The net proceeds will be used to acquire properties in Bulacan and South Cotabato.

CREIT’s sponsor, Citicore Renewable Energy Corp., is also off1.74 billion secondary shares. However, CREIT will not receive the proceeds from secondary offuh.

According to its latest schedule submitted to the SEC, CREIT said the offThis period will run from November 26 to December 3. It aims to be listed on the Main Board of the Philippine Stock Exchange on December 13.

At the same time, the Figaro group’s IPO could depend on the expected rebound in consumer spending since it operates food brands such as Figaro Coffee, Angel’s Pizza and Tien Ma’s Taiwanese Cuisine restaurants.

“The Figaro’s IPO would be dependent on the recovery or growth in consumer spending, which accounts for at least 70% of the economy, as part of measures to further reopen the economy,” Michael said. L. Ricafort said in a Viber message.

The Figaro group’s IPO, for an amount of 1.77 billion pesos, includes 1.26 billion ordinary shares offered to the public for a maximum of 1.28 pesos per share, with an over-allotment option of up to up to 126 million shares. He plans to use the net proceeds for store launches and renovations, store expansion, debt repayment, IT infrastructure development, as well as for potential acquisitions.

The off1st period is from December 16 to 22, while registration to the PSE is scheduled for December 31.

“The two IPOs (CREIT and Figaro Group) could already be part of the context or the history of a reopening or an increased recovery of the economy, unlike the previous sales of shares there a few months when there were still tighter restrictions or broader blockages, “said Ricafort. .

Meanwhile, Arthaland’s P3 billion FOO includes up to four million Series D preferred shares for P 500 per share, as well as up to two million preferred shares for an oversubscription option.

Arthaland plans to use the proceeds to redeem its Series B preferred shares and to fund investments in its subsidiaries.

In a statement released on Monday, the PES said 161.41 billion pesos of capital had been raised through the sale of primary and secondary stocks in the first nine months. This included four IPOs, three FOOs, three stock rights offers and six private placements.

The Keepers Holdings, Inc. recently closed its FOO and will be listed on the main exchange on Friday, having raised 4.5 billion pesos.

Regulators also recently approved the 1.5 billion peso FOO of A Brown Co., Inc. and the 3.5 billion peso FOO of Cirtek Holdings Philippines Corp.

Medilines Distributors, Inc. and Solar Philippines Nueva Ecija Corp. are also preparing for their IPOs. – Keren Concepcion G. Valmonte

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