MEXICO’S cement firm Cemex Holdings Philippines Inc. on Wednesday said it raised some P12.77 billion from the stock rights offer (SRO) that it completed last week.
The company said it made available some P8.29 billion common shares at P1.54 per share for the said SRO.
The said price was just a fraction of the company’s initial public offering (IPO) price of P10.75 in 2016.
After the offer, the company will increase its total issued and outstanding shares to P13.48 billion shares, subject to approval of the Securities and Exchange Commission (SEC).
The listing date for the new offer shares is on March 4, the company said.
The company will use the total proceeds raised from the offer to fund the expansion of its Solid Cement Plant, including payment of the outstanding debt owed by Solid Cement Corp. and APO Cement Corp.
The Hongkong and Shanghai Banking Corp. Ltd. Singapore branch is acting as the global coordinator, while BDO Capital and Investment Corp. served as the underwriter for the transaction.
Solid Cement tapped a six-year $75-million credit facility in 2018 that was then raised to $100 million.
Cemex said the outstanding balance under the Solid expansion facility agreement was at $93.3 million, the balance of which can change once the proceeds of the offer are received and available to be used.
It said the new production line of the Solid Cement Plant will commence operations by the second quarter of 2021 and expand the installed annual capacity of the Solid Cement facility by 1.5 million tons.
Cemex has an aggregate installed annual capacity of 5.7 million tons of cement as of end-September.
APO Cement plant in Cebu, meanwhile, currently has three grinding lines with an installed annual capacity of 3.8 million tons of cement and serves customers in Visayas and Mindanao, and also to the Luzon region.
The Solid Cement Plant in Rizal currently has three grinding lines with an installed annual capacity of 1.9 million tons of cement, and is in the process of expanding the plant with a new integrated cement production line with an additional installed annual capacity of 1.5 million tons.
The Solid Cement Plant serves Luzon region.
Cemex has five marine distribution terminals and 16 land distribution centers around the country.