(Adds share market price, background from prospectus)
MEXICO CITY, July 10 (Reuters) - Mexican construction conglomerate Elementia, part owned by billionaire Carlos Slim, soared as much as 10.5 percent on its Friday debut on the Mexican stock exchange after the shares were priced below the preliminary target range.
Early on Friday, Elementia priced its initial public offering at 17 pesos per share, below the 20-25 peso range proposed in a preliminary prospectus last month.
The company did not say why it had trimmed the initially anticipated offering price.
But in the first hour of trade on Friday the shares rose as high as 18.79 pesos per share in the first hour, more than 10 percent higher than the offer price. The stock later trimmed gains to trade 8.2 percent higher at 18.39 pesos.
The IPO included a 15 percent over-allotment above the base 201 million shares amount, bringing the total number of shares to 231,150,000 shares, or some 26.5 percent of the company’s total shares.
Global markets were roiled in the run-up to the IPO by investor concerns about the Greek debt crisis.
Including over-allotment options, the Elementia IPO was worth nearly 3.93 billion pesos ($249.26 million), the company said in its initial early Friday statement.
Controlled by Slim and Mexican businessman Antonio del Valle of plastic pipe maker Mexichem, Elementia said last month the capital raised would be mostly used to increase production capacity in Elementia’s cement division.
The company said that del Valle’s firm Kaluz, and indirectly, Slim’s Grupo Carso had subscribed and paid for 14.3 percent of the shares in the global offer, considering them part of the over-allotment option.
Elementia generates more than half of its sales in Mexico, with the United States accounting just over a fifth and South America some 18 percent, the company’s road show presentation showed.
The document said the company’s earnings before interest, taxes, depreciation and amortization in 2014 were 2.675 billion pesos, a rise of nearly 40 percent from the previous year.
$1 = 15.7667 Mexican pesos Reporting by Dave Graham, Roberto Aguilar and Alexandra Alper; Editing by Mark Potter and W Simon