The Market Monitor Minding the Nation's Business
The Philippine Stock Exchange, Inc. (PSE) has given its go-signal for Cemex Holdings Philippines, Inc. to conduct an Initial Public Offering (IPO). The cement producer will be offering 2.03 billion shares at a maximum price of P17.
Including its over-allotment option of 304.95 million shares, the company can potentially raise P39.74 billion at the maximum price, an amount that will become the biggest capital raised through an IPO in PSE’s history.
“The size of this IPO is a testament to the company’s confidence in the equities market as well as the country’s economic prospects,” said PSE COO Roel A. Refran.
The shares of Cemex will also be offered to Local Small Investors (LSI) as part of the LSI program of the PSE. The LSI program requires the issuer to allocate 10 percent of its offered shares to retail investors. In the case of Cemex, over 203 million shares are allocated for LSI. Interested LSI subscribers must personally submit their subscription application and other requirements to the issuer’s receiving agent which will be stationed at the PSE Ayala and Tektite Offices and in other designated centers in Metro Manila, and selected cities in the country during the offer period.
“By allocating a specific portion of each IPO exclusively for small investors, we aim to encourage and expand retail investor participation in the market,” Refran added.
The offer period of Cemex is scheduled on July 4 to 11, 2016.