The Philippine Stock Exchange on Monday approved the P40-billion initial public offering of Cemex Holdings Philippines Inc., one of the leading cement producers in the country.
A memorandum posted on the PSE website showed Cemex Holdings’ maiden offering would be from July 4 to July 11, while listing was tentatively set on July 18.
“The exchange’s approval of the initial public offering of CHP’s shares is subject to its compliance with all of the post-approval requirements of the Exchange,” the PSE said.
Cemex Holdings will offer up to 2.032 billion primary shares at an offer price of up to P17 per share to raise P34.5 billion and another 304.9 million in case of over allotment that will generate P5.18 billion.
The shares will be listed in the main board of the PSE.
Cemex Holdings will have a market capitalization of P88.32 billion and a public float of 45 percent, after the IPO.
Documents showed Cemex Holdings planned to use the proceeds for the repayment of up to $504 million worth of short-term loan to related third-party New Sunward Holdings B.V., which was used to acquire operating subsidiaries Apo Cement Corp. and Solid Cement Corp.
Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch and J.P. Morgan Securities PLC are the joint global coordinators and book runners while BDO Capital & Investment Corp. is the domestic lead underwriter.
Cemex Holdings is the newly formed subsidiary of Cemex Asian South East Corp, which is a wholly-owned indirect subsidiary of Cemex España, S.A., which in turn is indirectly owned by Cemex, S.A.B. de C.V. of Mexico, one of the largest cement companies in the world.
Cemex Holdings currently operates two cement plants in the Philippines, Apo Cement and Solid Cement, with aggregate installed annual capacity of 5.7 million tons as of March 31, 2016.
Apo cement plant in Cebu currently has three grinding lines and has an installed annual capacity of 3.8 million tons of cement serving customers in the Visayas and Mindanao while Solid cement plant in Rizal has three grinding lines with an installed annual capacity of 1.9 million tons.
The company said it planned to install a new integrated cement production line in Solid cement plant that was expected to provide 1.5 million tons of additional capacity per year by 2019.
Cemex Holdings also has one ready-mix plant in Manila and an admixtures facility in Parañaque City.
Cemex Holdings is the second IPO to be approved by PSE. The first was Golden Haven Memorial Park Inc. of former Senate president Manuel Villar.