Cemex said on Friday it would propose issuing up to 6 billion new shares to raise funds to pay its hefty debt, more than investors expected, prompting a slide in its stock price.
The Mexican company said the issue would be proposed during a shareholders meeting on Feb. 24 and used to back a planned public offer and convertible bonds.
The proposal, representing a fifth of Cemex’s float, would be worth about $1.9 billion at Friday’s closing share price, double what analysts forecast the company would offer.
"Cemex disclosed that the board will be proposing to issue new shares for an amount equivalent to up to 200 million American Depositary Shares (ADR’s). Each ADR is comprised of 10 Cemex CPO’s and each Cemex CPO is comprised of 3 ordinary shares," the company said in a statement.