Eagle Cement IPO a hit, 3 times oversubscribed
The initial public offering of Eagle Cement Corp. has been oversubscribed three times its size with investors clamoring for the shares on the back of the company’s strong credentials.
“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 ditector and head of Origination and Client Coverage at China Bank.
China Bank is one of the joint lead underwriters alongside with PNB Capital and SB Capital.
Owned by the family of Bilyonaryo Ramon S. Ang, Eagle sold 575 million primary and secondary shares at P15 each to raise about P8.625 billion.
Proceeds from the IPO will be used to fund the construction of a cement plant in Cebu and marine terminals in Visayas and Mindanao.
The new facility is expected to produce two million metric tons when completed in 2020.