Cemex pegs record IPO price at P10.75/share

MANILA, Philippines - Cemex Holdings Philippines Inc. (CHP), the local unit of Mexican cement giant Cemex, has finalized the offer price for its initial public offering (IPO) at P10.75 per share, lower than the initial guidance of P17 per share.

The company is set to launch the country’s biggest IPO on July 18, raising up to P39.745 billion.

It would be the second company to go public this year after the market debut of the Villar family’s Golden Haven Memorial Park on Wednesday.

The company has commenced with the international book-building period while the domestic offer period will be from July 4 to 11, according to the Offer Term Sheet filed with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).

The offering has caught the interest of several institutional foreign investors such as AC Capital Pte, Avanda Investment Management Pte, BlackRock Inc., Fullertun Fund Management Co. Ltd., Target Asset Management Pte and Wellington Management Co.

According to the filing, CHP plans to offer up to 2.0337 billion firm shares with a primary offer of up to 304.947 billion stabilization shares. Of the total 2.337 billion offering, 609.8 million will comprise the domestic offer and up to 1.423 billion shares will be for international offer. The offer price is up to P17 per share.