Cemex to launch US$ 1.8 billion share issue

Cemex has announced a global public offering of 1.2 billion new shares in the form of Ordinary Participation Certificates (CPOs) or US Dollar-denominated American Depositary Shares (ADSs). With an additional 180 million CPOs available if the offer is over subscribed, it could raise as much as MXP 24 billion (US$ 1.8 billion) based on Cemex's current share price.

Cemex says it expects about 900 million Peso-denominated CPOs to be sold in the issue, with the remaining capital raised through the US-Dollar equivalent ADSs. The ADSs will be available not in the US and other countries outside Mexico.

Cemex says it will use the proceeds to pay down debt, in line with a new financing agreement reached with its creditors last month.

The offering is being co-ordinated by a group of banks comprising J.P. Morgan, Citi, Santander and BBVA. These banks, along with BNP Paribas, HSBC and RBS for the international offering, will underwrite the international offering. The Mexican offering is being underwritten by Acciones y Valores Banamex, J.P. Morgan, BBVA, Santander, and HSBC.