Eagle Cement IPO oversubscribed

Eagle Cement Corp's Initial Public Offering (IPO) has been well received, with its initial public offering (IPO) oversubscribed by more than three times.

Completing its offer on 22 May 2017, Eagle priced its IPO at PHP15 per share and sold 500m common shares by way of primary offer with an overallotment option of up to 75m secondary shares.

Joint lead underwriters China Bank Capital Corp, SB Capital Investment Corp, and PNB Capital and Investment Corp, attributed the market’s positive response to Eagle’s strong fundamentals owing to its efficient production and strong brand equity.

“The excellent take up is a testament to the market’s belief in Eagle’s sound financials and aggressive expansion plan which comes amid the increasing infrastructure spending in the country,” said Virgilio Chua, managing director and head of origination and client coverage of China Bank Capital.

Proceeds from the IPO will partially finance the construction of Eagle’s 2Mta Cebu cement plant, which is set to be completed in 2020. With another 2Mta production line in its Bulacan cement plant underway, the company targets to become one of the top players in the local cement industry.