CREIT will finally have its IPO this Tuesday
After weathering a few days of uncertainty, Citicore Energy REIT [CREIT 2.55 pre-IPO] and the Megawide [MWIDE 5.45 0.73%] ownership group will finally be able to plan the IPO party with some confidence, as the PSE has approved CREIT’s IPO for this Tuesday, February 22. That’s five days later than the originally-scheduled IPO date.
We don’t have any additional information on the cause of the delay, only that there was some issue between the receiving agent, the underwriter, and the Philippine Depository & Trust Corporation. Zooming out, we also don’t know if the parties involved have figured out a way to keep this from happening again to any of the REIT IPOs that are tentatively planned for this year, like the CentralHub, the Jollibee [JFC 247.00 1.98%] and DoubleDragon [DD 10.24 3.33%] industrial REIT, and the Villar Family REIT.
MB BOTTOM-LINE
I think this is one of those situations where the damage done is hard to see. CREIT will still hold the IPO, the IPO buyers will still get their shares, the PSE will still get its listing fee from CREIT, and the underwriter and all of the other service agents in the deal will still get their fees. But imagine, just for a second, that you’re one of the many investors that was given a partial PSE EASy allocation, told to fetch a physical check from Makati for your refund, and then had to sit and wait while the shares that you paid for remain unlisted for five days beyond the planned IPO date. That’s not a situation that anyone investing in the Philippines should expect to experience simply as a cost of doing business in this market, and yet, here we are. To continue to encourage the wonderful reception that REITs have received from us retail investors, I hope the PSE will soon provide a full accounting of the problems that caused the delay and reveal the immediate steps that it’s taken to fix the problems for next time.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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