EAGLE Cement Corp. plans to raise up to P9.2 billion from an initial public offering (IPO) targeted in May to partially finance its ongoing expansion in the Visayas.
The company filed its registration statement for the IPO with the Securities and Exchange Commission (SEC) on Thursday.
Under the IPO, Eagle Cement plans to offer 575 million common shares at a maximum price of P16 each. The base offer consists of 500 million new or primary shares and an additional 75 million secondary shares—from shareholder Far East Cement Corp.—for the oversubscription option.
Listing of the shares on the Philippine Stock Exchange (PSE) is targeted in May.
Eagle Cement started operations in 2010 and is now the fourth largest player in the Philippine cement industry based on sales volume.
The company said it “believes this is the most opportune time to increase its cement manufacturing capacity and expand its distribution coverage” given the government’s focus on infrastructure projects.
“We have every confidence in the government’s ability to deliver the increase in infrastructure planned, and we will continue to invest in additional capacity and to expand our coverage across the country,” Paul Ang, Eagle Cement president and chief executive officer, said.
“As well as completing our third line in Bulacan, we plan to install a new plant in Cebu with modern distribution facilities across the Visayas and Mindanao regions. The IPO is a key step in achieving these goals,” he added.
Eagle Cement—through its plant in San Ildefonso, Bulacan —has the largest production in a single plant in terms of number of cement bags. The Bulacan cement plant has two production lines, and together with its grinding plant in Bataan, brings cement production capacity to about 5.1 million metric tons or 130 million bags per year.
The company is currently constructing its $300-million cement plant in Davao, which is expected to come online sometime this year. When completed, the plant will produce 2 million tons or 50 million bags of cement per year, which would bring Eagle Cement’s production capacity to 7.1 million tons or 180 million cement bags yearly.
Eagle Cement is controlled by businessman Ramon Ang, who also heads listed conglomerate San Miguel Corp. In 2016, Eagle Cement posted net sales of P13.28 billion and net income of P4.11 billion.