Cemex Holdings Philippines Inc. has set the final terms of its stock rights offering that could raise up to P12.77 billion to finance expansion.
Cemex said in a disclosure to the stock exchange it would offer 8.293 billion common shares at a price of P1.54 apiece.
The P1.54 prices represent a 26.3-percent discount to the stock’s closing price of P2.09 apiece Friday.
Cemex plans to use proceeds from the rights offering to mainly fund the expansion of the Solid Cement plant, pay the outstanding amounts owed by Solid Cement Corp. and APO Cement Corp., and finance other general corporate activities.
The Hong Kong and Shanghai Banking Corp. Limited, Singapore Branch is acting as global coordinator of the rights offering while BDO Capital & Investment Corp. will serve as the domestic underwriter.
Cemex set the offering period from January 20 to 24. The shares will be listed with the Philippine Stock Exchange on or before March 4.
Cemex shareholders of record as January 14 will be entitled to subscribe to the 1.5963 rights shares for every one common share owned.
Cemex’s principal shareholder Cemex Asian South East Corp., which owns 66.78 percent in the company as of end Oct 2019, agreed to subscribe to its entitlement share.
The cement company is currently constructing a $235-million cement production line capable of producing 1.5 million metric tons annually. The expansion will increase Cemex’s cement capacity by 26 percent. The facility is expected to be operational by the second quarter of 2021.
Cemex is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity.
Cemex reported a net income of P875 million in the first nine months of the year, a sharp reversal from a loss of P663 million year-on-year, on higher operating earnings, foreign exchange gains, and lower income tax expenses.
Nine-month sales inched up 2 percent to P18.2 billion over the same period last year.
Net income in the third quarter reached P72 million, a turnaround from a loss of P79 million in the same quarter in 2018.