Demand for shares of Eagle Cement surges

Cement-maker Eagle Cement Corp.—offering a new infrastructure spending play and a better growth story compared to its peers—has seen brisk demand for its P8.62-billion initial public offering (IPO), its underwriters said.

Following Eagle’s investors’ briefing on May 15, IPO joint lead underwriters China Bank Capital Corp., Philippine National Bank Capital and Investment Corp. and SB Capital Investment Corp. reported “encouraging” reception from both institutional and retail investors, citing appreciation for the company’s “production efficiency, strong brand equity, and sound financials.”

“The issue was well received by institutional and retail investors alike and we are confident that Eagle will keep this momentum as it launches the offer,” SB Capital president Noel Dayrit said in a press statement on Thursday.

“The investors’ warm response is a strong indication of confidence in Eagle’s fundamentals and potential to be the major driver of the Philippine cement industry,” Dayrit added.

Eagle priced the IPO at P15 a share. It will sell 500 million common shares by way of primary offer with an overallotment option of up to 75 million secondary shares.

The offer period ends on May 22.

To be traded under the ticker symbol “EAGLE,” the company targets to be listed on the main board of the Philippine Stock Exchange on May 29.

“That’s going to be a hot IPO. If you look at its financials, it’s much better than its competitors,” said Manny Cruz, chief strategist at stock brokerage Asiasec Equities.

In a research note written by research analyst Frances Rolfa Nicolas, leading online stock brokerage COL Financial said Eagle was “poised to benefit from the Philippines’ growing construction industry due to the country’s strong GDP (gross domestic product) growth and the government’s plan to boost infrastructure spending in the following years.” —DORIS DUMLAO-ABADILLA