Cemex P39.7-B IPO expected to set record
Cemex Holdings Philippines Inc., one of the country’s leading cement manufacturers, has obtained regulatory approval to launch an initial public offering (IPO) worth P39.74 billion, which could be the largest stock market debut in the country.
The Philippine unit of Mexico-based multinational cement-maker is undertaking the IPO at the dawning of the Duterte administration, which has vowed to sustain the Aquino regime’s infrastructure-building efforts under the public-private partnership (PPP) framework.
The Securities and Exchange Commission (SEC) has given Cemex the authority to offer to the public up to 2.338 billion shares at a price per share of as much as P17. The offering will bring to public hands about 45 percent of the company’s shares.
The maximum offering will include 304.95 million in shares that underwriters could take up in case of excess demand.
If Cemex is able to issue the maximum shares at the maximum price, this will set a record as the biggest IPO in the country. The three largest IPOs (excluding secondary shares) conducted in the PSE to date are those held by retailer Robinsons Retail Holdings Inc. (P28.11 billion in 2013); Sy family-led conglomerate SM Investments Corp. (P26.25 billion in 2005) and integrated gaming operator Travellers International Hotel Group (P20.41 billion in 2013).
About P24.56 billion of Cemex’s offer is proposed to be sold to international investors while the remaining P10.37 billion will be earmarked for the domestic market.
Citigroup Global Markets UK, JP Morgan Securities plc and HSBC Singapore have been mandated as joint global coordinators and bookrunners. BDO Capital & Investment Corp. acts as domestic lead underwriter.
The company will be listed on the PSE’s main board.
Cemex intends to use proceeds for repayment of up to $504 million of short-term loan from a related party. The debt was incurred in connection with the acquisition of operating subsidiaries—Apo Cement Corp. and Solid Cement Corp.—as part of a reorganization.
