Cemex IPO values Philippines subsidiary at US$536m

Cemex has today announced that it will price shares in its subsidiary, Cemex Holding Philippines, at PHP10.75 (US$0.23), valuing the operation at around US$536m.

Reuters News quotes Eduardo Francisco, president of underwriter BDO Capital & Investment Corp as stating: “That's good so there will be more upside and to ensure more demand post-listing”.

Mr Francisco added that the offering was already oversubscribed. The valuation comes at the low end of the range earlier indicated by Cemex, which had said it would consider pricing shares at between PHP10.50 and PHP12.00.

Cemex intends to use the proceeds from the IPO to pay down debt, which stood at nearly US$16bn in March 2016.