CEMEX Holdings Philippines, Inc. has set the price for its stock rights offering (SRO) of about 8 billion common shares at P1.54 per common share.
“Cemex Holdings Philippines, Inc. announced that the offer price for its stock rights offering of 8,293,831,169 common shares with a par value of P1.00 per common share has been set at P1.54 per common share,” the cement manufacturer said in a statement on Monday.
The company noted that proceeds from its 8,293 billion common shares will be used to fund the expansion of its Solid Cement plant in Antipolo, Rizal, including the payment of outstanding amounts owed by its subsidiary Solid Cement Corp. under a revolving credit facility to CEMEX Asia B.V. Part of the proceeds will also be used to pay outstanding loans through APO Cement Corp. with CEMEX B.V., and additional funding for other general purposes.
The Hongkong and Shanghai Banking Corp. Ltd. (HSBC) in Singapore is the global coordinator, while BDO Capital and Investment Corp. is the local underwriter.
“A confirmation of exempt transaction was issued by the Securities and Exchange Commission last 11 December 2019. On 11 December 2019, the Philippine Stock Exchange approved Cemex’s application for the listing of additional shares on the PSE,” the company said, and noting that both approvals are subject to the company’s compliance with post-approval requirements.
On Dec. 16, 2019, the company said it obtained clearance from corporate regulators for its plan to raise as much as $250 million, or approximately P12.66 billion, which will involve 13,115,000,000 common shares to existing shareholders. The offer period is targeted to begin Jan. 20 and end on Jan. 24. Proceeds from this transaction will also be used for plant expansion and for paying outstanding loans.
This SRO will be open to existing Philippine-based common shareholders or are in jurisdictions outside the country and the United States where participation is legal.
In April 2019, the company announced it is increasing its authorized capital stock to P18.31 billion, which involves about 18.31 billion common shares with a P1 per share par value. Its authorized capital stock is currently at 5.195 billion common shares priced at P1 each.
Shares in Cemex fell 25 centavos or 11.96% to close P1.84 each in the stock exchange on Monday. — Vincent Mariel P. Galang