Cemex Holdings Philippines raises $537m in IPO debut

Cemex Holdings Philippines Inc (CHP), a subsidiary of Mexico-based cement maker Cemex, has raised over $537 million (P25.13 billion) in its initial public offering (IPO) debut at the Philippine Stock Exchange, the country’s biggest IPO since 2013 and second-largest in Southeast Asia this year.

CHP opened today at P11.20 per share, a 4.2 per cent or P0.45 above the offer price of P10.75.

The company offered a total of 304,947,124 common shares representing 45 per cent of its capital stock.

Citigroup Global Markets Limited, The Hongkong and Shanghai Banking Corporation Limited (HSBC), Singapore Branch and JP Morgan Securities plc acted as Joint Global Coordinators and Joint Bookrunners, while BDO Capital & Investment Corporation served as the Domestic Lead Underwriter for the transaction.

As one of the leading cement producers in the Philippines based on installed annual capacity, CHP produces and markets cement and cement products, such as ready-mix concrete and clinker, in the Philippines through direct sales using its extensive marine and land distribution network.

Also Read: JSW Cement, Nirma, Cemex among bidders for Lafarge India assets

Incorporated last September 17, 2015, CHP is a holding company for the CEMEX, SAB de CV’s manufacturing businesses producing cement and cement products. CHP is a subsidiary of CEMEX Asian South East Corporation, which is a wholly-owned indirect subsidiary of CEMEX España SA, which in turn is indirectly owned by CEMEX.

CHP’s cement manufacturing subsidiaries have been operating in the Philippines for over 17 years, and have well established brands, such as APO, Island, and Rizal, each of which has a multi-decade history in the Philippines.

CHP also holds 100 per cent equity interest in Falcon Re Ltd, a company incorporated in Barbados which reinsures the CEMEX Reinsurer of property, non-damage business interruption and political risks. And in CEMEX Asia Research AG, a company incorporated in Switzerland which is the licensee for the certain licensed trademarks and intangible assets of the company.

The newly-listed firm said in a statement that proceeds from the IPO would be used to pay debt owed to a subsidiary of its ultimate parent company and to pay the debt used to refinance the debt owed to such subsidiary of CHP’s ultimate parent company, which includes debt owed to BDO Unibank Inc and could include debt owed to CHP’s principal shareholder.

Also read: Philippines: San Miguel plans $1b investment in cement biz, to build five new plants

CHP aims to capitalize on the ever growing construction industry in the Philippine private sector even as it looks forward to the new government’s pledge of massive infrastructure spending.

CHP chairman and president Pedro Jose Palomino expressed satisfaction with the strong participation the company received from institutional investors for its IPO.

“We take this as a sign of the investors’ confidence in the long-term prospects of CHP and, more importantly, the Philippines as a whole,” Palomino said.

Meanwhile, BDO Capital & Investment Corp president Eduardo Francisco underscored their company’s role as domestic lead underwriter for the deal, noting retail investors can take the cue from the strong institutional demand and should take a look at the offer.

“We are truly proud to be a part of this IPO. The ability to price and launch the deal amidst volatility is a testament to the strong fundamentals and growth prospects of the company,” Francisco said.

CHP last traded at P11.10 per share on Monday.

Also Read:

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PH Dealbook: Aboitiz buys Aseagas for $13m, San Miguel picks MRT 7 for $100m

Philippines: Abra Mining secures $6.3m new funds, completes $21m private placement

Aboitiz Equity-CRH combine acquires 99% of Lafarge Republic in PH

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.