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By Krista A. M. Montealegre
National Correspondent


Cement maker, Cebu property firm get final IPO green light




Posted on May 11, 2017


CEMENT MAKER Eagle Cement Corp. (ECC) and property developer Cebu Landmasters, Inc. have cleared all regulatory hurdles with the approval of the Philippine Stock Exchange (PSE), setting the stage for their respective initial public offerings (IPO).

Wilcon Depot, Inc. was the first company to go public this year, making its debut on the main board on March 31 after it raised P7.03 billion.
The PSE board of directors gave the green light on Wednesday for Eagle Cement and Cebu Landmasters to raise up to P9.2 billion and P3.8 billion, respectively, from maiden share sales, the bourse said in a statement.

Eagle Cement will go first, with pricing of the shares set today ahead of the offer period scheduled on May 16-22.

Cebu Landmasters will peg the final offer price on May 12, with the offer period set on May 19 to 26.

Both companies will be listed on the Main Board of the stock exchange. Eagle Cement will make its debut on May 29 followed by Cebu Landmasters on June 2.

“We commend both companies for successfully complying with PSE’s IPO requisites thereby enabling them to tap the stock market for their capital requirements. We encourage more companies to do the same,” newly installed PSE President and Chief Executive Officer Ramon S. Monzon was quoted in the statement as saying.

The IPOs come at an opportune time with the benchmark Philippine Stock Exchange index (PSEi) enjoying strong foreign buying on the back of positive corporate earnings and progress in the government’s tax reform program.

The bellwether index is up 1.74% this month, extending its year-to-date return to nearly 14%.

“Demand (will be) strong with institutional investors coming in,” BDO Capital and Investment Corp. President Eduardo V. Francisco said in a mobile phone message, referring to the prospects of Cebu Landmasters’ equity offer.

“For Eagle, we like the cement play given that Eagle has been gaining market share from the foreign competitors,” Michael Gerard D. Enriquez, chief investment officer at Sun Life of Canada Philippines, Inc., said in a separate message.

Eagle Cement -- controlled by billionaire Ramon S. Ang, president and chief operating officer of San Miguel Corp. -- is offering 500 million primary shares with an over-allotment option of up to 75 million secondary shares at a price of up to P16 apiece.

The company will use proceeds to partially finance the construction of a Cebu cement plant and related facilities.

The cement manufacturer hired China Bank Capital Corp., PNB Capital and Investment Corp. and SB Capital Investment Corp. as joint issue managers, joint lead underwriters and joint bookrunners.

Eagle Cement estimates its market share at 30% in Metro Manila, Central Luzon and the Cavite-Laguna-Batangas-Rizal-Quezon region combined. The three regions account for about three-fifths of the Philippine economy.

Meanwhile, Cebu Landmasters is selling 505 million shares consisting of 430 million primary shares and 75 million secondary shares for a maximum price of P6.56 each. The company has an option to sell another 75 million secondary shares to cover over-allotment.

Proceeds from the offer will fund land acquisition, debt repayment and working capital requirement.

The Cebu-based developer hired BDO Capital as issue manager and will be joined by BPI Capital Corp. as lead underwriters and joint bookrunners of the IPO.

Founded in 2003 by real estate veteran Jose R. Soberano III, the real estate firm is aggressively expanding to the Visayas and Mindanao to become the region’s preferred developer in three years, the company said in a statement.

Cebu Landmasters said it has 13 projects in various stages of development and construction, and six more are being planned for development in the near future.

Bermaz Auto Bhd. (P1.24 billion) and Pure Energy Holdings Corp. (P1.58 billion) are waiting for PSE’s green after bagging the approval of the Securities and Exchange Commission (SEC) to proceed with their respective IPOs.

Pending with the SEC are IPO applications from Chelsea Logistics Corp. for P8 billion; Expresspay, Inc. for P528 million; Xeleb Technologies, Inc. for P751.8 million and Audiowav Media, Inc. for P2.66 billion.

Wilcon Depot, Inc. was the first company to go public this year, making its debut on the main board on March 31 after it raised P7.03 billion.