Cemex Holdings Philippines Inc. said Wednesday it successfully raised P12.77 billion in fresh funds following the completion of a stock rights offering.
Cemex said in a disclosure to the stock exchange a total of 8.29 billion common shares were taken up by shareholders at an offering price of P1.54 apiece.
Shareholders were entitled to subscribe to 1.5963 rights share for every one common share held as of Jan. 14, 2020. The rights offering ended on January 24, 2020.
The cement company would have a total of issued and outstanding common shares of 13.48 billion after the rights offering, subject to the approval of the Securities and Exchange Commission on its application to raise the authorized capital stock.
The shares will be listed on the Philippine Stock Exchange on March 4, 2020.
The firm’s controlling shareholder, Cemex Asian South East Corp., earlier committed to subscribe “not just its entitlement of the rights shares in the initial round of the offer, but also to subscribe any unsubscribed rights shares in the mandatory second round of the offer.”
Cemex said it would use the proceeds from the fund raising activity to fund the expansion of the Solid Cement plant, pay outstanding loans and finance other general corporate activities.
The cement firm is constructing a $235-million cement production line capable of producing 1.5 million metric tons annually. This will increase cement capacity by 26 percent. The facility is expected to be operational by the second quarter of 2021.
The Hongkong and Shanghai Banking Corporation Limited, Singapore Branch acted as the global coordinator while BDO Capital & Investment Corp. served as the underwriter of the transaction.
Cemex is one of the leading cement producers in the Philippines, based on annual installed capacity. It 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.
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.