Cemex Holdings Philippines Inc. said it is raising $250 million from a stock rights offer it will issue within the year.
The company said it has yet to finalize the terms of the offer and that it “delegated to certain members of its senior management the power and authority to fix the terms and conditions of the rights offering… the entitlement ratio, the offer price, the payment terms, among others.”
The rights issue offering will give the company’s eligible stockholders of record the opportunity to participate and subscribe to the common shares, Cemex said.
The company will be filing the appropriate registration with the Securities and Exchange Commission and the Philippine Stock Exchange.
As part of the fundraising activity, Cemex is set to call for a special stockholders meeting in mid-October for the approval of the increase of its capital stock to P18.31 billion from the current P5.19 billion.
Cemex closed the first six months of the year with profits of P802.31 million, a turnaround from last year’s P584.72-million losses. Revenues rose 4 percent to P12.35 billion from P11.87 billion a year ago.
Cemex said its gray cement volume fell by 2 percent during the six-month period but average selling price rose 6 percent from last year.
It said cost of sales for the period reached P7.3 billion. As a percentage of revenue, cost of revenue increased by 1 percentage point from last year due to the scheduled kiln maintenance of its Solid Cement plant in the first quarter of the year, and higher raw material cost and purchased cement resulting from the Naga landslide incident in Cebu.