Eagle Cement Corp., the cement company of tycoon Ramon Ang, is building a P12.5 billion cement plant in Cebu and will use part of the proceeds of its planned P9.2 billion initial public offering (IPO) to finance the project.
Proceeds from the offering will be used to partially finance the construction of a two million metric ton capacity cement plant and its support facilities in Cebu.
The project will include the construction of a manufacturing plant, a distribution center and marine terminals in Southern Luzon, Visayas and Mindanao regions. The project cost includes procurement of various construction related materials and services, as well as the purchase of the properties where the plant will be built on.
The completion of the Cebu cement plant will be financed through a combination of the net proceeds of the offer, debt funding and internally generated funds,” ECC said in its registration statement filed with the Securities and Exchange Commission (SEC) yesterday.
Construction of the plant is expected to commence within the fourth quarter of the year and is targeted to be completed by the first quarter of 2020.