UPDATE 1-Philippines’ Citicore Energy surges in debut after $124 mln IPO

Adds comment from CEO and closing share performance

MANILA, Feb 22 (Reuters) – Citicore Energy REIT Corp CREIT.PS, the Philippines’ first real estate investment trust (REIT) listing focused on renewable energy, rallied 11% at its stock market debut on Tuesday.

The REIT, which is the third initial public offering (IPO) this year in the Southeast Asian country, raised 6.4 billion pesos ($124.47 million).

The company’s shares jumped 9% at the opening bell, and rose as much as 15% before closing 11.4% higher at 2.84 pesos apiece. The broader share index .PSI closed 0.9% up.

Citicore REIT plans to increase its power generation capacity to 1,500 megawatts (MW) in the next five years, up from the existing 145 MW, to meet growing demand for clean energy, CEO Oliver Tan told reporters.

It sold 2.5 billion shares, including an over-allotment option, at 2.55 pesos per share.

Citicore REIT derives its income from solar power assets, while the previous five REIT listings had hotels and office space as assets in their portfolio.

REITs, companies that manage profitable real estate assets like office buildings and commercial spaces, are attractive to investors in search of regular dividends.

($1 = 51.42 Philippine pesos)

(Reporting by Neil Jerome Morales
Editing by Ed Davies)

((neiljerome.morales@thomsonreuters.com; +632 8841 8914;))