CEMEX Holdings Philippines, Inc. (Cemex) has completed its stock rights offering (SRO) last week and raised P12.77 billion from selling 8.29 billion common shares.
In a disclosure to the stock exchange Wednesday, the listed cement manufacturer said it successfully sold 8,293,831,169 common shares priced at P1.54 each in its SRO from Jan. 20-24.
The proceeds generated from the offer will be used to fund Cemex’s expansion of its Solid Cement plant in Antipolo, Rizal and to pay outstanding debt, specifically that of its subsidiaries Solid Cement Corp., through a November 2018 credit facility, and APO Cement Corp., through an October 2014 loan agreement, with Cemex Asia B.V. The rest of the proceeds will be used for other general corporate purposes.
“Post-SRO and subject to the approval from the Securities and Exchange Commission (SEC) of Cemex’s application for increase of authorized capital stock, Cemex would have a total of issued and outstanding 13,489,226,623 common shares,” it said.
The offer shares are targeted to be listed at the Philippine Stock Exchange (PSE) on March 4.
Cemex has 5,195,395,454 listed shares at the PSE as of Wednesday. Its market capitalization stood at P22.39 billion.
The company’s SRO plan was approved by the SEC and the PSE in December. When Cemex announced it at the time, it said the offer would be made to all eligible shareholders at a discount to the volume-weighted average price of Cemex’s listed common shares.
It had tapped Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch as its global coordinator and BDO Capital & Investment Corp. as its domestic underwriter for the SRO.
Cemex is an indirect subsidiary of Mexico-based Cemex S.A.B. de C.V., which entered the Philippines in 1997 and listed at the PSE in 2016. Its board of directors announced in September last year the plan to do an SRO to increase the company’s authorized capital stock.
Cemex swung to a net income of P874.68 million in the nine-month period ending September from a net loss of P663.43 million in the same period a year ago. Its shares at the stock exchange slipped nine centavos or 5.42% to P1.57 each on Wednesday. — Denise A. Valdez
