The Philippine Stock Exchange approved the planned P9.2-billion initial public offering of Eagle Cement Corp., a cement manufacturer controlled by businessman Ramon Ang.
The offering period for Eagle Cement’s IPO is set on May 16 to May 22 while listing will be on May 29.
Documents showed Eagle Cement would sell 500 million common shares, and another 75 million shares in case of strong demand, at P16 apiece.
Proceeds from the planned fund raising activity will be used to help fund a P12.5-billion cement plant in Cebu.
The proposed plant will have capacity of 2 million metric tons, with construction scheduled to start in the fourth quarter of 2017 and completion expected by 2020.
ECC’s Cebu cement plant is set to raise the company’s production to 9.1 million metric tons per annum by 2020 to meet the market’s demand and solidify the company’s position as a leader in terms of production capacity. It will also allow ECC to mark its path in the Visayas and Mindanao cement market, together with the construction of strategic marine terminals.
Eagle Cement will have a public ownership of 10 percent and a market capitalization of P80 billion, after the IPO. It intends to debut on the main board of PSE on May 29 under the ticker symbol “EAGLE”.
The company hired SB Capital Inc., PNB Capital and Investments Corp. and China Bank Capital Corp. as the underwriters for the offering.
The PSE also approved the plan of developer Cebu Landmasters to sell 505 million shares for up to P6.56 apiece, with an over-allotment option for another 75 million secondary shares to raise funds for expansion.
The float will be up to 33.84 percent of the company’s total outstanding shares after the IPO. It will have a market capitalization of up to P11.25 billion.
BDO Capital & Investments Corp. and BPI Capital Corp. are the joint lead underwriters and joint book runners for the IPO. Offer period was set on May 19 to May 26 while listing would be on June 2.
Wilcon Depot Inc. earlier conducted an IPO this year.