Cemex selling new shares to existing shareholders
The Philippine Stock Exchange (PSE) has approved a plan of cement-maker Cemex Holdings Philippines Inc. to raise as much as P12.6 billion ($250 million) from the sale of new shares to existing investors.
Cemex, which is part of Mexican multinational cement group Cemex S.A.B. de C.V., will price its stock rights offering on Jan. 6, 2020, and launch the offer from Jan. 20 to 24 next year, based on an offering memorandum posted by the PSE.
The cement-maker will sell as much as 13.115 billion in new common shares. The rights entitlement ratio has not been determined.
BDO Capital & Investment Corp. acts a lead underwriter for this offering while HSBC Singapore is the global coordinator.Listing of the new shares are tentatively set for March 4, 2020.
The new shares will come from an increase in Cemex’ authorized capital stock from P5.195 billion to P18.31 billion, consisting of 18.31 billion common shares with a par value of P1 per share.
Proceeds from the stock rights offering will be used to fund the expansion of Cemex’ Solid Cement plant, pay debt and cover other general corporate purposes.
Article continues after this advertisementCemex broke ground for the cement plant expansion, which will cost around $235 million, last May. Upon completion, the new production line is expected to increase the total capacity of this plant from 1.9 million metric tons to 3.4 million metric tons per year.
Based on the company’s earlier announcement, the new cement line will use less energy as it is designed to reuse waste hot gases from drying raw materials. A high efficiency bag filter technology will be also utilized to significantly improve dust emission control far below the actual regulation. It will also employ a proprietary technology called low temperature clinker that will help reduce carbon dioxide emissions.–Doris Dumlao-Abadilla INQ
