Cemex Holdings Philippines Inc. has attracted six cornerstone investors for its planned initial public offering.
Bloomberg reported six cornerstone investors, including BlackRock Inc. and Fullerton Fund Management Co., an arm of Singapore state investment company Temasek Holdings Pte, had agreed to buy about $104 million worth of Cemex Holdings’ shares.
Avanda Investment Management Pte, founded by former senior executives at Singapore’s sovereign wealth fund, and a client of Wellington Management Co. have also agreed to buy stock in the Cemex Holdings.
Bloomberg reported that Cemex Holdings set a price range of between P10.50 and P12 per share, or significantly lower than the initial indicative price of P17 apiece.
At P12.50 per share, Cemex Holdings will raise as much as P29.2 billion in proceeds from the sale of 2.337 billion common shares to foreign and local investors.
The IPO will be the country’s biggest IPO since Robinsons Retail Holdings Inc.,’s maiden share offering that raised as much as P28.1 billion in proceeds.
Cemex Holdings, according to the latest prospectus posted on its website, plans to offer up to 2.032 billion in primary shares at a price of up to P17 apoiece to raise P34.5 billion, and another 304.9 million in overallotment shares to raise another P5.18 billion.
Citigroup Global Markets Ltd., The Hongkong and Shanghai Banking Corporation Ltd. Singapore Branch and J.P. Morgan Securities PLC are the joint global coordinators and book runners, while BDO Capital & Investment Corp. is the domestic lead underwriter.
Cemex Holding plans to use proceeds from the fund raising activity to partially reduce debts.
The offering period is set from July 4 to July 11, while listing date has been tentatively scheduled on July 18. The shares will be listed in the main board of the PSE.
Cemex Holdings after the IPO will have a market capitalization of P88.32 billion and a public float of 45 percent.
Cemex Holdings is the newly-formed subsidiary of Cemex Asian South East Corp., a wholly-owned indirect united of Cemex España, S.A., which in turn is indirectly owned by Cemex, S.A.B. de C.V., one of the largest cement companies in the world.
It operates two cement plants, Apo Cement and Solid Cement, with an aggregate installed annual capacity of 5.7 million tons as of March 31, 2016.
Cemex SAB, based in Monterrey, Mexico, said last year it might sell as much as $1.5 billion of assets as it seeks to restore an investment-grade capital structure.
The company agreed to sell $400 million of US properties in May, following a $53-million agreement to dispose of its Bangladesh and Thailandoperations announced in March.
