Investors swarm IPOs of Eagle, Cebu builder
Investors expressed strong interest in the initial public offerings of Eagle Cement Corp. and developer Cebu Landmasters Inc. which are expected to exercise their over allotment options, underwriters handling the transactions said Thursday.
SB Capital Investments Corp. president Noel Dayrit said Eagle Cement’s P8.6-billion maiden offering which kicked off Tuesday was well received by institutional and retail investors.
“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 said.
The cement maker is selling 500 million common shares by way of primary offer with an over allotment option for another 75 million secondary shares at P15 apiece.
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 the company’s foothold in the Visayas and Mindanao, together with the construction of several marine terminals.
ChinaBank Capital Corp. president Virgilio Chua said there were inquiries from foreign investors about Eagle Cement’s IPO, but the cement firm wanted the IPO to be a purely domestic offering.
“We are very happy with the demand for the IPO,” Chua said.
Meanwhile, the IPO of Cebu Landmasters also received a warm response from investors because of its attractive pricing.
BDO Capital and Investments Corp. president Eduardo Francisco said the allotment for the institutional investors was now fully covered and the company was going to the Visayas and Mindanao to generate interest from retail investors.
“Even with the Eagle IPO, there is strong demand for Cebu Landmasters IPO because we priced it cheaply to be attractive. But this stock is expected to deliver good results and medium and long-term investors of this stock will be rewarded for investing in the stock,” Francisco said.
Offer period for Cebu Landmasters will be on May 19 to 26, with the listing of the shares set on June 2.
Cebu Landmasters plans to raise P2.9 billion from the sale of 505 million shares, with an over-allotment option for another 75 million secondary shares at an offer price of P5 apiece.