The Securities and Exchange Commission (SEC) has given the green light for Cemex Holdings Inc. and Villar-led Golden Haven Memorial Park Inc. to raise funds from an initial public offering.
Cemex, a unit of Mexico’s Cemex SAB De CV, seeks to raise P39.74 billion by sell 2.33 billion shares to at an indicative price of P17 apiece.
The multinational Cemex is a building materials company and is present in more than 50 countries.
Of the IPO shares, P10.36 billion will be sold to the domestic market and P24.19 billion to foreign investors.
The IPO is poised to be one of the biggest fund raising activities in the country via the Philippine Stock Exchange.
For the year, no company has yet gone public waiting instead for the market to stabilize from the volatility the first quarter.
The proceeds of the share sale will be used to settle some $504 million of the company’s short- and long-term obligations from creditor Sunward Holdings BV.
The loans were secured for the acquisition of its operating units Apo Cement Corp. and Solid Cement Corp., in line with its reorganization.
The debt carries an interest rate of 5.21 percent a year, and would fall due and demandable on July 9 but renewable in September and December, the registration statement showed.
The company has several long- and short-term loans that carry a 7.535 percent interest rate. Some $35.3 million would become due and demandable in 2020, $105.9 million each in 2021, 2022, and 2023.
BDO Capital and Investment Corp. will serve as domestic lead underwriter, while joint global coordinator and joint bookrunners are Citigroup Global Markets Ltd.-United Kingdom, J.P. Morgan Securities PLC-UK, and The Hongkong and Shanghai Banking Corp. Ltd.-Singapore Branch.
Meanwhile, Golden Haven, the Manuel Villar group’s memorial services firm, intends to raise P786.84 million by offering 74.11 million common shares for up to P10.62 apiece.
“The offer shares represent 15 percent of the outstanding common shares of the company after the offer and will be issued out of the company’s authorized and unissued capital stock,” Golden Haven said.
The net proceeds of P711.77 million, after deduction of transaction fees and expenses, will be spent to fund acquisition, growth, and expansion strategies.
“In particular, expanding its existing death-care facilities, products, and services through undertaking land and site development of the undeveloped areas of its existing memorial parks,” the company said.
It will also use some proceeds for land acquisition, construction of new memorial chapels and crematory facilities in Golden Haven Las Piñas Park, and for general corporate purposes and working capital requirements.
The company has tapped Asian Alliance Investment Corporation to as the issue manager and lead underwriter for the IPO, which could take place sometime in the second half of the year.
Business tycoon and former Sen. Manuel Villar said he is eyeing more capital raising activities for Golden Haven once the venture becomes publicly listed this year.
“It is just a small IPO. It is all that we can do now. But the really major fund raising will be two to three years after this IPO. That’s when we will be getting the big names for underwriters,” Villar said in an interview.
Villar is also the chairman of publicly-listed Vista Land and Lifescapes Inc. For now, Golden Haven will be a separate entity, he said.