Eagle sets IPO price at P15 each

Cement firm Eagle Cement Corp. priced the initial public offer (IPO) of its shares at P15 each. 

It will sell 500 million common shares by way of primary offer with an overallotment option of up to 75 million secondary shares during its offer period until May 22 for its target debut in the Philippine Stock Exchange (PSE) on May 29.

Coming from Eagle’s investors’ briefing on May 15, the joint lead underwriters of the IPO — China Bank Capital Corp., Philippine National Bank Capital and Investment Corp., and SB Capital Investment Corp. – noted an encouraging reaction from both institutional and retail investors, who are banking on Eagle’s production efficiency, strong brand equity, and sound financials.

“The issue was well received by institutional and retail investors alike and we are confident that Eagle will keep this momentum as it launches the offer,” says SB Capital Investment Corp. President Noel Dayrit.

“The investors’ warm response is a strong indication of confidence in Eagle’s fundamentals and potential to be the major driver of the Philippine cement industry,” Dayrit added.

Proceeds of the IPO will be used to partially finance Eagle’s Cebu plant, which will house its fourth production line. The plant is expected to help establish Eagle’s foothold in the Visayas and Mindanao, together with the construction of several marine terminals.

Eagle’s upcoming IPO comes amid government efforts to increase spending on infrastructure projects to around P8 trillion for the year alone.

The firm’s current capacity stands at 5.1 million metric tons of cement per annum and will increase to 7.1 million metric tons in 2018, once the third production line in its Bulacan plant is complete.

The output will make Eagle the largest cement firm in the Philippines in terms of capacity.

In 2020, Eagle will add another 2 million metric tons to its capacity, once the Cebu plant is complete. This will make Eagle better poised to meet the expected continued growth in demand for cement in the country and take part in nation building. RIZA LOZADA