Cemex Holdings Philippines prices IPO near low end of range

Reuters are reporting that Cemex Holdings Philippines will raise US$535.8 million in the Southeast Asian nation's third-largest IPO, pricing its shares at the low end of the indicative range.

The Philippines' biggest IPO since 2013 is riding on the construction boom in one of the fastest growing economies in Asia, although the slashed offer price revealed investors' worries about yield and the lacklustre performance of other cement firms.

The offering will raise US$535.82 million, making it the Southeast Asian country's biggest IPO since the record October 2013 share sale by Robinsons Retail Holdings Inc, which raised more than US$620 million.

The company announced last week an indicative range of 10.50 pesos to 12.00 pesos each for the Philippines' second listing this year. It has secured US$125 million from seven cornerstone investors for the IPO.

Cement sales in the Philippines rose 13% to 6.43 million t in the first quarter on strong demand from both government-supported and private sector-led construction.

Edited from source by Joseph Green. Source: Reuters

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