Cemex stock rights offer priced at P1.554 apiece

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    Cemex Holdings Philippines Inc. said it is pricing its stock rights offering at P1.554 apiece.

    The price will gross for the company P14.31 billion from the 8.29 million shares up for sale.

    Cemex has appointed The Hongkong and Shanghai Banking Corp. Ltd., Singapore Branch as global coordinator and BDO Capital & Investment Corp. as domestic underwriter.

    The net proceeds from the offer will be used primarily to fund the expansion of Cemex’ Solid Cement plant as well as the payment for a revolving credit facility tapped by Solid Cement from Cemex Asia B.V.

    The six-year $75-million credit facility was tapped by Solid Cement, which is Cemex’s Luzon cement arm, in November 2018. It was later raised to $100 million in February last year.

    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.

    Cemex said the new production line in the Solid Cement plant will commence operations by the second quarter of 2021. This will expand the installed annual capacity of the Solid Cement facility by 1.5 million tons.

    Cemex had an aggregate installed annual capacity of 5.7 million tons of cement as of end-September.

    Cemex’ APO Cement plant in Cebu currently has three grinding lines with an installed annual capacity of 3.8 million tons of cement and serves customers in the Visayas and Mindanao, and to some extent 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 currently 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.

    Cemex has five marine distribution terminals and 16 land distribution centers around the country.