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Ramon Ang’s Eagle Cement to go public in May

Rappler.com

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Ramon Ang’s Eagle Cement to go public in May
The 4th largest cement firm in the Philippines is expanding its production capacities as the Duterte administration plans to spend more for infrastructure projects

MANILA, Philippines – Tycoon Ramon Ang’s Eagle Cement Corporation, the 4th largest cement firm in the Philippines, plans to raise as much as P9.2 billion through an initial public offering (IPO) slated this May.

Documents filed with the Securities and Exchange Commission (SEC) showed that Eagle Cement will sell up to 575 million common shares at an offer price of up to P16 per share.

Of the 575 million offer shares, 500 million are primary shares, while 75 million are overallotment shares to be sold by an existing shareholder.

Post-IPO, Eagle Cement will have public ownership of 11.5% and a market capitalization of P80 billion. (READ: Ramon Ang to build $300M cement plant in Davao)

Net proceeds from the company’s maiden share offering will be used to fund the construction of a P12.5-billion cement plant in Cebu.

The proposed plant will have a capacity of two million metric tons. Construction is scheduled to start in the 4th quarter of the year and will be completed by 2020.

Last November, Eagle Cement acquired the mineral rights to a 50-hectare property in Cebu from APC Group Incorporated.

The following month, it also purchased South Western Cement Corporation, a cement manufacturing company with mineral rights to an 810-hectare property also in Cebu.

Eagle Cement is also currently building a 3rd production line within its facility in Bulacan. The expansion, to be completed in 2018, will increase its cement production capacity by two million metric tons (MT).

This will bring the company’s total production capacity to 7.1 million MT, making it one of the leading cement companies in the country.

Eagle Cement will be the 3rd cement company to be listed on the Philippine Stock Exchange. The two others are Holcim Philippines Incorporated and Cemex Holdings Philippines Incorporated, which conducted an IPO in 2016.

Various cement companies are expanding their production capacities due to expected increase in demand, as the Duterte administration plans to hike government spending for big-ticket infrastructure projects.

The government earlier said it will steadily increase infrastructure spending to reach 7% of the country’s gross domestic product by 2020, in what is hoped to be the “golden age of infrastructure.”

Eagle Cement has tentatively set May 16 as the listing date for its IPO.

The company is 31.43% owned by Ang and family, while the remaining 68.57% is held by Far Eastern Cement Corporation.

Diversified conglomerate San Miguel Corporation, headed by Ang, is aggressively bidding for infrastructure projects in the country. San Miguel also owns Northern Cement Corporation, which operates a facility in Pangasinan. – Rappler.com

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