Shares in the Philippine subsidiary of Mexican cement maker Cemex opened at P11.20, 4.2 percent higher than their IPO price of P10.75.
Cemex raised P25.13 billion in the Philippines' biggest IPO since 2013.
Cemex is offering over 2 billion shares with an option to sell another 304 million shares to cover additional demand. The IPO shares represent 45 percent of the company's capital stock.
The company said proceeds will be used to pay debts.
Cemex president and chief executive Pedro Jose Palomino said the company plans to invest $300 million building a cement plant with a capacity of 1.5 million tons to begin operations in the second half of 2019.
The firm is banking on the new government's pledge of massive infrastructure spending as well as a private sector construction boom.
"They are listing at a good time because there's a lot of optimism in the market," said Martin Enrile, head of equity investments for BPI Asset Management. "Our market is rather at a pricey level but it continues to be driven by foreign inflows."
The main stock index hit a 15-month high on Friday. The Philippine bourse is the second best-performing in Southeast Asia, gaining 15.5 percent year-to-date, next only to Thailand's 15.8 percent.
"Given the fact valuations are once again elevated, there is an incentive for companies to raise capital," April Lee-Tan, head of research of COL Financial Group, told Reuters.
Several IPOs had been put on hold due to market volatility. IPOs in the pipeline include Datem Inc., D.M. Wenceslao & Associates Inc. and Pilipinas Shell Petroleum Corp., a subsidiary of Royal Dutch Shell PLC. -- With Reuters
source: www.abs-cbnnews.com
