Ramon Ang's Eagle Cement gets PSE nod on P7.384-B IPO

Ramon S. Ang's Eagle Cement Corp. on Wednesday got the approval from the Philippine Stock Exchange (PSE) to go ahead with a P7.384-billion initial public offering.

In an emailed statement, the PSE said it has approved Eagle Cement IPO of 500 million primary shares at a maximum price of P16.00 per share.

The final price of the offer will be set on Thursday, May 11, and will be offered from May 16 to 22, 2017.

The company has set a tentative listing date of May 29, 2017.

According to the IPO prospectus approved by the Securities and Exchange Commission (SEC), Eagle Cement intends to offer 500 million common shares at P16.00 per share and up to 75 million common shares as overallotment option.

The company estimates that the net proceeds after deducting fees, commissions and expenses payable by the company, will be approximately P7,384,999,399.06.

Eagle Cement intends to use money to partially finance the construction of the Cebu Cement Plant. Estimated to cost P12.5 billion, the Cebu Cement Plant entails the construction of a manufacturing plant and a distribution center.

The company said it also intends to create marine terminals in Southern Luzon, the Visayas and Mindanao.

The company hired China Bank Capital Corp., PNB Capital and Investment and SB Capital Investment Corp. as joint issue managers and bookrunners for the IPO.

Aside from Eagle Cement, the PSE also approved the P3.8-billion IPO of Cebu Landmasters Inc. on Wednesday.

"We commend both companies for successfully complying with PSE's IPO requisites ... enabling them to tap the stock market for their capital requirements. We encourage more companies to do the same," PSE President and CEO Ramon S. Monzon said. — Jon Viktor Cabuenas/VDS, GMA News