Cemex SAB de CV (ADR)(NYSE:CX) Cemex Holdings Philippines Inc has made a name in the Philippine Stock Exchange having successfully debuted on its share price. Its initial public offering price of P10.76 per share rose to as much as 5.7% to close at P11.10 per share. The local subsidiary of Mexican cement giant performed much better having closed 35 centavos higher at P11.10 on their first trading day.
The raising of P25.1 billion from its IPO marks the PSE’s second biggest IPO in peso term. It follows SM INVEST CORP PHP10 (OTCMKTS:SVTMF) but becomes third in US Dollar terms after Robinsons Retail Holdings, Inc. The company’s total stock was at 45% having offered 2.03 billion of its common shares for the IPO and another 304.95 million being on stabilization.
Reactions on the company’s performance
It is a move that has been embraced by a multitude of investors given that it is one of the biggest transactions in the country. The company’s president and Chairman Pedro Jose Palomino acknowledges that it is one of the things that will give a positive reception to investors who traded 264.9 million shares in Cemex Holdings for P2.94 billion. Nevertheless, there is also more interest comes in from the financial community abroad.
According to the chief equity analyst at DA Market Securities, Nisha S. Alicer, Cemex’s performance may have been propelled by the governments’ high expenditures on infrastructure development. However, equity trader Frank Gerard J. Barboza seems irritated with the infrastructure/construction sector under President Rodrigo R. Duterte’s administration terming some news from the industry as bullish.
What does the latest achievement mean for Cemex Holdings
The Philippines is no longer a dangerous country according to Palomino, which means Cemex is likely to gain more acceptances from international investors. The company’s decision to make an international offering was on a pure realization of the keen interest in the financial economy for the Philippines.
Nevertheless, the company says that it will use some of the earnings to settle short-term debts. It will also be able to able to kick start on its $300-million expansion plan for its Solid Plant in Antipolo City.