Cemex Holding Philippines plans SRO

Cemex Holding Philippines plans SRO
08 April 2019

Cemex Holdings Philippines Inc plans to increase its capital stock by more than triple to raise finds through a potential stocks rights offering (SRO).

"Cemex Holdings became one of the most actively-traded stock (last week) after it disclosed its plan to increase its authorised capital to enable itself to raise finds via SROs or other fund-raising option," said Jervin S de Celis of Timson Securities.

Cemex is aiming to raise up to US$250m to improve its capital structure, provide flexibility in its balance sheet, and fully find the company's expansion of its Solid Cement plant in Antipolo, Rizal. The US$235m expansion project will increase the Solid Cement plan's capacity by 1.5Mta, taking overall plant capacity to 3.4Mta.

"It seems like they cannot fully find the project despite being delayed from 2019 to 2020. However, to be fair, this will improve its financial position given its huge exposure to debt securities," said Wendy Estacio of Unicapital.

Published under Cement News