Cemex PHL to raise $250 million in fresh capital.
MEXICAN cement manufacturer Cemex Holdings Philippines Inc. on Wednesday said it is increasing its authorized capital stock in move to raise some $250 million in fresh capital.
In its disclosure, the company said it is raising its authorized capital stock to P18.31 billion divided into 18.31 billion common shares from the current P5.19 billion divided into 5.19 billion common shares.
'The rationale for the amendment is for the ability to raise equity capital including but not limited to, a rights offering the corporation may undertake, subject to the final decision and approval of the board of directors. The corporation is potentially looking to raise up to $250 million which would allow it to improve its capital structure, fully fund the ongoing Solid Cement plant expansion and provide balance sheet flexibility,' it said.
'Following this capital-raising exercise, any unissued shares will be kept in the form of authorized, but unissued share capital. The corporation currently has no plans for any further fund-raising,' it said.
For 2018, the company incurred a loss of P930 million from the previous year's income of P658.83 million due to higher income-tax expenses recorded in the second quarter, lower operating earnings and higher foreign-exchange losses.
'Our domestic cement volumes were flat year-over-year during the fourth quarter as volume performance was affected by production constraints caused by the landslide in Naga, Cebu, near our APO Cement Plant,' the company said.
Industry demand remained robust from both the private and public sectors. Its absolute domestic cement volumes were an all-time high in 2018, as volumes grew 7 percent year-over-year aided by debottle-necking initiatives to increase production and supply-chain throughput by half a million tons.