RSA to use IPO proceeds to fund P12.5B Cebu plant
Bilyonaryo Ramon S. Ang will be using some of the proceeds of the planned IPO of his cement company, Eagle Cement Corp. to build a P12.5 billion plant in Cebu.
Some of the proceeds from the planned P9.2 billion IPO funds will be used to partially finance the construction of a new plant in Cebu, with a capacity of two million metric ton.
The project, said Philippine Star, will include the construction of a manufacturing plant, a distribution center and marine terminals in Southern Luzon, Visayas and Mindanao regions.
The estimated project cost consists of procurement of the raw materials for the construction and services and the land cost of the properties where the plant will be built on.
“The completion of the Cebu cement plant will be financed through a combination of the net proceeds of the offer, debt funding and internally generated funds,” the Star quoted ECC’s registration statement to Securities and Exchange Commission (SEC) yesterday.
The company eyes completion of the plant by 2020, whose construction will commence by the last quarter of the year.