Eagle Cement prices IPO at P15 per share
Cement-maker Eagle Cement Corp. priced its initial public offering at P15 per share, finalizing its maximum offering size at P8.62 billion.
The final offering price of P15 per share was confirmed by Eagle Cement chair Ramon S. Ang in a text message to Inquirer late Thursday, the day of IPO price-setting.
The IPO price was reduced by P1 per share from the maximum price of P16 per share proposed in the original prospectus.
Eagle Cement Corp., one of the country’s leading cement-makers, plans to sell 500 million common shares by way of primary with an over-allotment option of up to 75 million secondary shares. The offer period will run from May 16 to May 22.
The cement firm intends to debut on the main board of the PSE on May 29 under the ticker symbol “EAGLE”.
The IPO proceeds will be used to partially finance the construction of a 2-million metric ton cement plant in Cebu, which will become its fourth production line. The Cebu cement plant is set to raise Eagle’s production capacity to 9.1 million metric tons per annum by 2020. It will also allow Eagle to make inroads into the Visayas and Mindanao cement market, together with the construction of strategic marine terminals.
Currently, Eagle has a production capacity of 5.1 million tons a year, or a total of 130 million 40-kilo bags of cement. It is presently completing its third production line in Bulacan which will raise its production capacity to 7.1 million metric tons per annum by 2018.
China Bank Capital Corp., PNB Capital and Investment Corp. and Security Bank Capital Investment Corp. have been appointed by Eagle as the joint issue managers, joint lead underwriters and joint bookrunners for this equity offering.
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