Cemex Philippines IPO Said Set to Price in Asset-Sale Plan BoostBy
The initial public offering of Cemex SAB’s Philippines unit is likely to price Wednesday in a deal that’s expected to raise about $500 million, according to a person with direct knowledge of the matter.
The deal will probably amount to the Asian country’s biggest IPO in more than two years, said the person, who asked not to be identified because details of the transaction are still private. Supermarket operator Robinsons Retail Holdings Inc. sold shares for $621 million in October 2013, data compiled by Bloomberg show.
Cemex, the largest cement maker in the Americas, is targeting asset sales of $1 billion to $1.5 billion by the end of next year as part of its push to restore an investment-grade capital structure after the global financial crisis pushed it to the brink of default. In March, the Monterrey, Mexico-based company announced the $53 million sale of its operations in Bangladesh and Thailand.
Shares advanced 3.5 percent to 11.07 pesos at 12:07 p.m. in Mexico City, extending a recovery after steep losses following the U.K.’s vote to exit the European Union. Cemex posted the biggest two-day decline since 2011 in the sessions after the British referendum.
The company is among the most exposed in Mexico to the so-called Brexit, as 8.9 percent of revenue comes from the U.K., where infrastructure projects like London’s Crossrail tunnel helped boost sales in the first quarter. An economic slowdown in that country, if it materializes, would endanger Cemex’s sales.