Eagle Cement IPO ‘oversubscribed’ – lead underwriters


Expects to raise P75B upon listing
SOON-to-be listed cement manufacturer Eagle Cement Corp.’s initial public offering (IPO) was “more than three times oversubscribed” as investors were attracted by its efficient production lines and strong equity brand, its joint lead underwriters said late Wednesday, without providing specific figures on the oversubscription.

Virgilio Chua, China Bank Capital Corp. managing director and head of origination and client coverage, said 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 spending in the country.”

The lead underwriters said Eagle sold 500 million common shares by way of a primary offer with an overallotment option of 75 million secondary shares. It ended its offer period last May 22, with an IPO price of P15 per share. It plans to list on the stock market on May 29.

The statement said Eagle expects to raise P75 billion upon listing.

In the same statement, Eagle said its interest to list on the local market was due to anticipation of the expected boost in local cement consumption given the current administration’s thrust on infrastructure programs.

Eagle estimates that local cement consumption will reach 39 million metric tons in 2022, from 26.7 million MT in 2016.

Proceeds from the IPO will be used to partially finance the construction of its Cebu cement plant, which boasts of a 2 million MT capacity and is set for completion in 2020.

With another 2 million MT production line in its Bulacan cement plant currently underway, the company is “better poised to become one of the top players in the local cement industry,” it said.

China Bank Capital Corp., PNB Capital and Investment Corp., and SB Capital Investment served as the joint lead underwriters of Eagle Cement’s IPO.

The cement maker is owned by tycoon Ramon Ang, who is the president and chief executive officer of conglomerate San Miguel Corp.


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