Cemex IPO priced at P10.75

CEMENT-maker Cemex Holdings Philippines Inc. has priced its initial public offering (IPO) at P10.75 per share, bringing the total size of the stock debut to P25 billion, one of the largest IPOs seen in the country.

The final IPO price was disclosed by Cemex to the Philippine Stock Exchange on Thursday.

The deal was oversubscribed even without yet taking in orders from trading participants and local investors, said a banker involved in the transaction. As such, the banker said the oversubscription option will be exercised.

The IPO price was slashed from the earlier maximum price of P17 per share and was set at the middle of the indicative price range of P10.50 to P11 per share, another underwriter said, explaining the pricing basis.

It was earlier reported that some institutional investors had agreed to be the cornerstone investors for the IPO, including BlackRock Inc., Fullerton Fund Management Co. ( a unit of Singaporean state investment firm Temasek) and Avanda Investment Management.

Cemex, one of the country’s largest cement players, will offer to the public 2.03 billion shares plus an over-allotment option of 304.95 million shares.
 
The shares of Cemex will also be offered to local small investors (LSI) as part of the LSI program of the PSE. The LSI program requires the Issuer to allocate 10 percent of its offered shares to retail investors. In the case of Cemex, over 203 million shares are allocated for LSI.

The offer period of Cemex is scheduled to run on July 4 to 11. Tentative listing date is on July 18.

The lead underwriter for this offering is BDO Capital & Investment Corp. while Citigroup Global Markets Ltd., The Hongkong and Shanghai Banking Corp.’s Singapore Branch and J.P. Morgan Securities plc are
joint global coordinators and joint bookrunners.