Philippines: Eagle Cement’s IPO oversubscribed, sees $1.5b market cap

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With its initial public offering (IPO) oversubscribed three times, Eagle Cement Corp expects a market capitalization of $1.5 billion (P75 billion) upon listing.

Completing its offer on May 22, Eagle priced its IPO at P15 per share and sold 500 million common shares by way of primary offer with an overallotment option of up to 75 million secondary shares.

The cement company is set to make its debut on the Philippine Stock Exchange on May 29 under the ticker symbol ‘EAGLE’.

Joint lead underwriters China Bank Capital Corp, SB Capital Investment Corp, and PNB Capital and Investment Corp, attributed the market’s positive response to Eagle’s strong fundamentals owing to its efficient production and strong brand equity.

“The excellent take up is a testament to the market’s belief in EAGLE’s sound financials and aggressive expansion plan which comes amid the increasing infrastructure spending in the country,” said Virgilio Chua, managing director and head of origination and client coverage of China Bank Capital.

Proceeds from the IPO will partially finance the construction of Eagle’s Cebu cement plant, which boasts of a 2 million metric ton capacity and is set to be completed in 2020.

With another 2 million metric ton production line in its Bulacan cement plant underway, Eagle targets to become one of the top players in the local cement industry.

The construction of its Cebu plant and marine terminals will also secure Eagle’s foothold in the Visayas and Mindanao regions and eventually expand its presence nationwide.

Eagle expects its total cement capacity to reach 7.1 million metric tons by 2018, once the third production line of its Bulacan cement plant is completed. This will make it the largest cement firm in the Philippines in terms of capacity.

The firm said that as per industry estimates, the Philippine cement consumption is projected to reach 39 million metric tons in 2022 from 26.7 million tons in 2016.

“Apart from the government’s plan to upgrade and build more public infrastructure, the continued boom in the real estate market and the expanding tourism sector bolsters interest on Eagle’s IPO in anticipation of the expected increase in local cement consumption,” Eagle said in its statement.

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

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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.