Cemex set to make P12.77B from new shares offer

Cement-maker Cemex Holdings Philippines Inc. has priced its stock rights offering at P1.54 per share, allowing the company to raise P12.77 billion in fresh capital for its expansion program.

Cemex, which is part of Mexican multinational cement group Cemex S.A.B. de C.V., will be the first company to tap the local stock market for capital rebuilding this new year.

Existing shareholders are entitled to subscribe to 1.5963 rights share for every one common share held as of Jan. 14.

About 8.29 billion common shares will be offered from Jan. 20 to 24 this year, Cemex disclosed to the Philippine Stock Exchange (PSE) on Monday.

Proceeds from the offering will fund the expansion of Cemex’ Solid Cement plant, pay outstanding amounts owed by Solid Cement Corp. and other general corporate purposes.

Cemex had broken ground for the expanded cement plant, which will cost around $235 million, in May last year. Upon completion, the new production line is expected to increase the plant’s total capacity 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 is expected to be more energy-efficient as it is designed to reuse waste hot gases from drying raw materials. A high efficiency bag filter technology is also seen to significantly improve dust emission control far below the actual regulation.

The new plant will also employ a proprietary technology called low temperature clinker that will help reduce carbon dioxide emissions.

HSBC’s Singapore branch is the global coordinator while BDO Capital & Investment Corp. is the domestic underwriter for the transaction.

The new shares will come from the increase in the firm’s 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. Listing of the new shares are tentatively set for March 4, 2020.

The PSE approved the rights offering last December.

At present, Cemex is valued by the stock market at around P10.86 billion. INQ