Mexico’s Cemex set to price $1.5 billion ADR offer

Mexico’s Cemex set to price $1.5 billion ADR offer
Published: 28 September 2005

Mexico’s Cemex will fix the price of a share offer worth around $1.5 billion after the stock market closes on Tuesday.   Cemex plans to sell 27 million of its American Depositary Receipts (ADRs), currently trading near all-time highs, from a trust that has held them against forward contracts with banks as part of an executive stock option scheme.  
 
Analysts have said the sale should raise close to $1.5 billion and company directors have said obligations to the banks would be around $1.3 billion, leaving the difference for the company to use to pay down debt.  
 
Since all of the ADRs already exist, their sale will not affect ownership proportions among shareholders, but will increase the number of free-floating shares and boost liquidity, Cemex has said.