CEMEX Holdings Philippines Inc., which will debut on the Philippine Stock Exchange today, has exercised its option to issue more shares, bringing the final initial public offering (IPO) deal to the maximum size of P25.1 billion.
About 75 percent of the IPO was bought by foreign investors while domestic investors acquired 25 percent, said Eduardo Francisco, president of BDO Capital and Investment Corp., which acted as the lead underwriter for the offering.
Cemex has also advised the Philippine Stock Exchange about the exercise of the stabilization-related option and the purchase of the 304.95 million stabilization shares relative to the IPO.
Underwriters stabilize the secondary market price of a security after an initial public offering (IPO) by buying shares at the offer price, thereby supporting the stock in case of selling pressure from those looking to flip their shares.
Cemex is the first cement company to debut on the local stock exchange in two decades, riding on the country’s strong growth story and President Duterte’s resolve to boost infrastructure spending.
The offshore book-building for Cemex was oversubscribed by multiple times.
About 30 percent of the IPO was taken by “cornerstone” investors such as BlackRock Inc., Fullerton Fund Management Co. (a unit of Singaporean state investment firm Temasek) and Avanda Investment Management.
The Cemex IPO is the biggest seen in the local bourse in three years, next to the P28.11-billion offering of Gokongwei-led retailer Robinsons Retail Holdings Inc. in 2013 and the P26.25-billion offering of Sy family-led conglomerate SM Investments Corp. in 2005.
Cemex sold 2.03 billion primary shares at P10.75 a share plus an over-allotment option of 304.95 million shares. This brings about 45 percent of its stock to public hands, setting the company’s market capitalization at P55.85 billion upon listing today under the ticker “CHP.” Doris Dumlao-Abadilla