UPDATE 2-Philippine unit of Mexico's Cemex prices IPO near low end of range

miércoles 29 de junio de 2016 23:27 GYT
 

* Prices IPO at the low end of indicative range

* Third-largest IPO and biggest since 2013

* Strong cement sales on the back of construction boom (Adds fund manager's comments)

By Neil Jerome Morales

MANILA, June 30 (Reuters) - Cemex Holdings Philippines Inc , a unit of Mexican cement giant Cemex, will raise $535.8 million in the Southeast Asian nation's third-largest IPO, pricing its shares at the low end of the indicative range.

The Philippines' biggest IPO since 2013 is riding on the construction boom in one of the fastest growing economies in Asia, although the slashed offer price revealed investors' worries about yield and the lacklustre performance of other cement firms.

In a notice to the Philippine Stock Exchange on Thursday, Cemex Philippines said it priced the IPO at 10.75 pesos ($0.23) per share. (bit.ly/296kDt1)

"It's not a screaming buy," Augusto Cosio, president of First Metro Asset Management Inc in Manila, told Reuters. "People will probably buy it, but buy it to flip it."

Some investors would have concerns about the company's lack of a dividend policy, capacity constraints at its production plants and the poor track record of other listed cement manufacturers, he said.   Continuación...