The entry of Cemex Holdings Philippines Inc. (CHP) in the market was met with strong reception from investors, enabling the company to raise P25.13 billion in its initial public offering.
CHP is the local subsidiary of Mexican multinational company Cemex. Shares of CHP closed at P11.10 or 35 centavos higher than its IPO price of P10.75 per share. The company sold 2.34 billion shares plus 304.95 million shares in over allotment option.
Pedro Jose Palomino, president and chairman of CHP, said he was happy with the positive reception. He said that the transaction was one of the biggest in the country. The CHP president claimed that this was a sign of strong interest in the financial community abroad. “The Philippines is becoming extremely interesting for investments and for us it’s a good opportunity to engage investors abroad,” Palomino said.
Palomino revealed that the funds raised from the IPO will be used for refinancing. The company has set aside P600 million to P650 million for capital expenditures this year.
