Cemex Holdings Philippines set for record IPO

Cemex Holdings Philippines set for record IPO
Published: 03 June 2016


Cemex Holdings Philippines Inc has obtained regulatory approval to launch an initial public offering (IPO) worth PHP39.74bn (US$854.3m), which could be the largest stock market debut in the country.  

Cemex intends to use proceeds for repayment of up to US$504m of short-term loan from a related party. The debt was incurred in connection with the acquisition of operating subsidiaries—Apo Cement Corp and Solid Cement Corp —as part of a reorganisation.

The Securities and Exchange Commission (SEC) has given Cemex the authority to offer to the public up to 2.338bn shares at a price per share of as much as PHP17. The offering will bring to public hands about 45 per cent of the company's shares. The maximum offering will include 304.95m in shares that underwriters could take up in case of excess demand. If Cemex is able to issue the maximum shares at the maximum price, this will set a record as the biggest IPO in the country.

The Philippine unit of Mexico-based multinational cement-maker is undertaking the IPO at the dawning of the Duterte administration, which has vowed to sustain the Aquino regime's infrastructure-building efforts under the public-private partnership (PPP) framework.  

About PHP24.56bn of Cemex's offer is proposed to be sold to international investors while the remaining PHP10.37bn will be earmarked for the domestic market. Citigroup Global Markets UK, JP Morgan Securities plc and HSBC Singapore have been mandated as joint global coordinators and bookrunners.  BDO Capital & Investment Corp acts as domestic lead underwriter.