CHP TO INCREASE CAPITAL STOCK | Marvin Germo

CHP TO INCREASE CAPITAL STOCK

By: Marvin Germo | September 4, 2019

Shareholders To Approve Capital Stock

Cemex Homdings Philippines, Inc. (CHP) is looking to seal shareholder approval to add authorized capital stock next month along with its target to raise up to $250 million funds through a stock rights offering. The firm disclosed that it will hold a special meeting of stockholders this coming October 16 to get the approval for the increase of capital stock. CHP looks forward to increase its capital stock from P5.195 billion to P18.310 billion with 18.310 billion of shares at P1 par value. Here are some of the useful information about this news.

Catch me in my live training events! (quick plug)

The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing.  I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.

Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Manila – September 14, 15, 21, 22,&28, 2019
Stock Smarts Qatar —  October 3 – 6, 2019
Stock Smarts Cebu – October 26-27,2019
Stock Smarts Taiwan – November 2, 2019
ICON Davao – November 30, 2019

Why Increase Its Capital Stocks?

Companies increase their capital stocks for many reasons. As for CHP, this capital hike will permit the company to conduct stock rights offering up to $250 million, which is in line with its preliminary target. The proceeds from this transaction will be used to finance the expansion of Solid Cement Plant located in Antipolo, Rizal—one of its own plants, to give flexibility to its balance sheet and to improve its capital structure. CHP is already operating at high utilization levels and the expansion of its Solid Cement Plant is essential to maintain its position in the market and continue to take advantage of the long-term demand here in the Philippines.

Expenditure For Solid Cement Plant

The company disclosed its expenditure for Solid Cement Plant as well. Accordingly, it will spend about $235 million to improve the capacity of the plant by 1.5 million metric tons (MT) from its current capacity of 1.9 million MT. If this is achieved, the capacity of the company will hike by 26%. The start of the operation for the new production line is expected to happen by the fourth quarter of 2020 and the products will be offered in the National Capital Region and Southern Luzon area. The firm expects the Solid Cement Plant to be free-cash-flow during the second half of 2021.

CHP in 2019

The firm emphasized that the proposed right offering would be transparent, fair, and equitable to all of its shareholders. The necessary approvals from the Securities and Exchange Commission and Philippine Stock Exchange will be secured as well. During the first half of 2019, CHP swung back to its profitability with an attributable profit of P802.32 million from its P584.71 million attributable loss last year during the same period. Gross revenues also took a jump to P12.356 billion, making it 4% higher year on year.

I’m excited to share my 5th book overall and the 4th book in the Stock Smarts series, Stock Smarts: Breaking the Resistance – How to time your traders perfectly. The heart of this book is to teach you strategic ways on how to come in and buy and sell stocks in a way where you come as the market is headed up and come out as the market is headed down. The book is now out and exclusive via Marvin Germo Book Orders.
For more details and to order my other books: Marvin Germo Book Orders
Stock Smarts Book