Cemex Philippines Draws BlackRock, Fullerton to $525 Million IPO

Cemex Holdings Philippines Inc. is seeking to raise as much as $525 million in what could become the country’s biggest initial public offering in more than two years.

The building-material producer, a unit of the largest cement maker in the Americas, is offering 2.03 billion new shares at 10.50 pesos to 12 pesos apiece, according to terms for the deal obtained by Bloomberg. Six cornerstone investors including BlackRock Inc. and Fullerton Fund Management Co., an arm of Singapore state investment company Temasek Holdings Pte, have agreed to buy about $104 million of stock in the offering, the terms show.

At the top end of the range, the Cemex IPO would be the largest 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. 

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 offering, according to the terms. The investors didn’t commit to hold their shares for a set period and can sell any time after the IPO. 

Citigroup Inc., HSBC Holdings Plc and JPMorgan Chase & Co. are managing the offering, together with domestic lead underwriter BDO Capital. The company will use the proceeds to repay debt, the terms show.

Cemex SAB, based in Monterrey, Mexico, said last year it may 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 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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