Cemex Philippines Said Poised to Seek Up to $526 Million in IPO

  • Cement maker plans to offer shares at 10.50 to 12 pesos apiece
  • IPO could be country’s biggest in more than two years

Cemex Holdings Philippines Inc. plans to seek as much as 24.4 billion pesos ($526 million) in what could become the country’s biggest initial public offering in more than two years, people with knowledge of the matter said.

The building material producer, a unit of the largest cement maker in the Americas, plans to offer 2.03 billion new shares at 10.5 pesos to 12 pesos apiece, the people said. Cornerstone investors have agreed to buy more than $100 million of shares in the IPO, according to the people, who asked not be identified as the information is private.

At the top end of the range, the Cemex IPO would be the largest IPO in the Philippines since supermarket operator Robinsons Retail Holdings Inc.’s $621 million share sale in October 2013, data compiled by Bloomberg show. More companies in the country may revive their plans for equity offerings after president-elect Rodrigo Duterte said current economic policies will continue, BDO Capital & Investment Corp. said last month. 

Cornerstone investors in the Cemex Philippines IPO are mostly foreign institutions, the people said. The company plans to start taking investor orders on Tuesday, according to the people.

Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. are managing the offering, together with domestic lead underwriter BDO Capital. Proceeds from the offering will be used to repay debt, according to a regulatory filing this month. 

Paul Vincent Arcenas, vice president for strategic planning at Cemex Philippines, didn’t reply to calls and mobile-phone messages seeking comment. IFR reported the price range earlier Monday in Manila, citing unidentified people.

Cemex SAB, based in Monterrey, Mexico, said last year it may sell as much as $1.5 billion of asset as it seeks to restore an investment-grade capital structure. The company agreed to sell $400 million of U.S. properties in May, following a $53 million agreement to dispose of its Bangladesh and Thailand operations announced in March.

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