Cemex debuts on PSE

MANILA - Cement giant Cemex Holdings Philippines made its debut on the Philippine Stock Exchange on Monday in one of the Philippines' biggest initial public offerings at the stock exchange.

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

Stock picks: MPIC, Cemex, Crown Asia Chemicals

MANILA – Construction-related companies will likely benefit from President Rodrigo Duterte’s pledge to increase infrastructure spending to five percent of gross domestic product, a fund manager said Tuesday.

These include Metro Pacific Investments Corp. (MPIC), Mexican cement giant Cemex’s Philippine unit, and Crown Asia Chemicals, First Metro Investment Corp. vice president Bede Gomez told ANC’s “Market Edge with Cathy Yang.”

“Execution is the key. I believe they will be good at what they have mentioned to execute what was planned,” Gomez said of President Rodrigo Duterte, who assumed office last week promising decisive leadership.

Optimism in the market “will remain high” in the next 12 months, with the economy expected to be largely unaffected by the fallout from Britain’s decision to leave the European Union.

Duterte’s predecessor, Benigno Aquino, had planned a similar infrastructure overhaul but only the four-kilometer Daang Hari-SLEX toll road was operational by the time he stepped down.

“I hope it will not be a repeat of the previous administration… There was a lack of actual execution and implementation,” he said.

source: www.abs-cbnnews.com