Eagle Cement IPO is 3 times oversubscribed, says underwriter

The initial public offering (IPO) of Eagle Cement Corp. has been received by a strong demand from investors and is oversubscribed three times over, an underwriter said on Wednesday.

“The excellent take up is a testament to the market’s belief in Eagle’s sound financials and aggressive expansion plan which comes amidst the increasing infrastructure spending in the country," China Bank Capital Corp. Managing Director and Head of Origination and Client Coverage Virgilio Chua said.

The cement maker closed a week-long offering on May 22. It is set to debut on the Philippine Stock Exchange on May 29 under the ticker symbol “EAGLE."

The company priced its IPO at P15 per share and sold 500 million common shares by way of primary offer with an overallotment option of up to 75 million secondary shares.

Upon listing, Eagle's market capitalization will be at P75 billion.

Proceeds from the IPO will be used to partially finance the construction of a cement plant in Cebu, which is expected to be completed in 2020.

Eagle has appointed China Bank Capital, Philippine National Bank Capital and Investment Corp. and SB Capital Investment as joint issue managers, joint lead underwriters and joint bookrunners for the share sale. — Ted Cordero/VDS, GMA News