The Philippine Stock Exchange approved the planned P13.5-billion stock rights offering of Cemex Holdings Philippines Inc.
Cemex’s rights offering, according to a preliminary offer sheet posted on the PSE website, will come from an increase in the company’s authorized capital stock to P18.3 billion from P5.19 billion that the company’s shareholders approved on October 16.
The company said it would sell the shares at a price not exceeding P3.39 apiece. Share price of Cemex on Thursday closed at P2.10.
Cemex will compute the final price based on the volume-weighted average price of on 30 consecutive trading days prior to the pricing date and subject to discount not exceeding 25 percent. It will set the final terms of the offering on January 6, 2020.
The offering period will start from January 20 to 24, 2020. The shares will be listed with the PSE on or before March 4, 2020.
Cemex shareholders as of record date January 14, 2020 will be entitled to subscribe to the rights offer shares.
BDO Capital and Investments Corp. is the domestic underwriter of the offering while The Hongkong and Shanghai Banking Corp Ltd. is the global coordinator.
The company’s principal shareholder, Cemex Asian South East Corp. which owns a 66.78-percent stake in the company as of end Oct 2019, agreed to subscribe to its entitlement share.
Cemex will use proceeds from the rights offering to finance the expansion of Solid Cement plant in Antipolo, Rizal.
The cement company is constructing a $235-million cement production line capable of producing 1.5 million metric tons annually. The expansion will increase the cement capacity by 26 percent.
The facility is expected to be operational by the second quarter of 2021.
Cemex is an indirect subsidiary of CEMEX, S.A.B. de C.V., one of the largest cement companies in the world based on annual installed cement production capacity.
The local unit registered a net income of P875 million in the first nine months of the year, a reversal from a P663-million net loss in the same period last year, on higher operating earnings, foreign exchange gains and lower income tax expenses.
Nine-month sales inched up 2 percent to P18.2 billion from a year ago.
