The Securities and Exchange Commission (SEC) of the Philippines has approved the initial public offerings (IPOs) of cement maker Cemex Holdings Philippines Inc (CHP) local unit and Golden Haven Memorial Parks Inc, worth altogether $864.1 million (P40.53 billion).
CHP, a local unit of Mexico-based cement and construction materials firm Cemex, aims to raise P39.74 billion in its IPO while Golden Haven, a company owned by business magnate and former senator Manny Villar, targets around P787.12 million, according to their regulatory filing.
These are the first companies who have sought regulatory approval this year, while several firms postponed their planned IPOs in the latter part of 2015, citing “uncertainty in the capital markets.”
CHP, a local unit of Mexico-based cement and construction materials firm Cemex, is selling up to 2.34 billion shares for P17 per share, which will be listed and traded on the Main Board of the Phillippine Stock Exchange (PSE).
CHP plans to use the proceeds to repay its short term loan incurred from the acquisition of its operating subsidiaries Solid Cement Corp and Apo Cement Corp.
For the CHP transaction, BDO Capital & Investment Corp will be the domestic lead underwriter; while the joint global coordinators and joint bookrunners will be Citigroup Global Markets Limited, JP Morgan Securities PLC (United Kingdom), and Hongkong and Shanghai Banking Corp Ltd (Singapore).
As for Golden Haven, it seeks to offer up to 74.12 million common shares priced up to P10.62 apiece. It intends to use proceeds for acquisition funding, business expansion, and working capital requirements.
The Villar group is likely to grow its memorial park business by increasing capacities of its cemeteries, columbarium facilities and funeral homes.
Golden Haven is busy expanding its present death care facilities, products and services via undertaking land and site development of the undeveloped areas of its existing memorial parks, land acquisition, and the construction and completion of new memorial chapels and crematory facilities.