Sept. 21 (Bloomberg) -- Cemex SAB, the largest cement maker in the Americas, fell the most in almost two months as investors sold shares on speculation they can buy them back at a discount in an equity offering this week.

Monterrey, Mexico-based Cemex slid 7 percent to 17.39 pesos in Mexico City trading for the biggest retreat since July 29. Its American depositary receipts tumbled 8.1 percent to $13.05.

Cemex may have to sell its stock at a discount of as much as 10 percent to market price as it competes for investor funds, according to Rogelio Gallegos, who oversees $255 million at Actinver SA. The company is offering 1.2 billion shares after pledging to raise at least $1 billion to pay down debt.

“Investors are selling today in hope of getting a better price in the share sale,” said Carlos Hermosillo, an analyst with Mexico City-based brokerage Vector Casa de Bolsa SA.

The company plans to sell stock tomorrow, the same day HeidelbergCement AG, Germany’s biggest cement maker, will offer 62.5 million shares. Brazilian real estate developers Rossi Residencial SA, PDG Realty SA Empreendimentos e Participacoes and Multiplan Empreendimentos Imobiliarios SA also plan equity sales in the next two weeks.

“There’s a lot of paper trying to come through,” said William Landers, who oversees about $6 billion in Latin American stocks at BlackRock Inc. in Plainsboro, New Jersey. “They are definitely going to have to compete for investors’ attention and capital.” Landers declined to say if he would buy the shares.

Debt Reduction

Chief Executive Officer Lorenzo Zambrano is tapping the equity market for the first time since 2003 as part of an August agreement with banks to refinance $15 billion of debt and avert a default. Cemex’s debt tripled after the company bought Rinker Group Ltd. in July 2007 for $14.2 billion, just as a housing slump hit the U.S. and spread to the company’s other markets.

Cemex will require a discount as “candy” to lure investors, said Actinver’s Gallegos, who plans to buy the shares in the sale. David Riedel, the president of Riedel Research Group Inc. in New York, predicts Cemex will offer 5 percent less than current prices because of the company’s debt levels.

A 1.2-billion share offering would raise 20.9 billion pesos ($1.56 billion) at today’s closing price. Cemex has almost tripled since this year’s low on March 9, compared with a 75 percent gain in the benchmark Bolsa index in the period.

To contact the reporter on this story: Thomas Black in Monterrey at tblack@bloomberg.net; Emily Schmall in Mexico City at eschmall@bloomberg.net.

Last Updated: September 21, 2009 16:37 EDT