Eagle Cement marks stock debut, targets dominance in Philippines market

MANILA, Philippines - Newly-listed Eagle Cement Corp. targets to dominate the local market over the near term after a successful stock debut yesterday.

Eagle Cement chairman Ramon Ang said the company is eyeing a market share of at least 25 percent in the next two to three years.

This would propel Eagle Cement as the market leader in the country, surpassing current industry leaders Republic and Holcim, Ang said.

Eagle Cement’s current market share stands at 14 percent.

“I think by next year already, Eagle should be number one by capacity. We hope we can sell that much volume. So if we can sell seven million tons next year, Eagle will be number one right away,” Ang said.

Ang said the expected increase in its market share would be driven by the additional volume to be provided by its new factories in Bulacan and Cebu.

He said the government’s aggressive infrastructure push under the “Build, Build, Build” program also bodes well for the company.

 “But majority of the cement market are really catering to general public because there are a lot of OFWs (overseas Filipino workers) that are constructing houses everywhere,” Ang said.

By next year, the company will commission a third line in its Bulacan plant, which would boost its cement capacity to 7.1 million metric tons from the 5.1 million metric tons at present.

The firm is also building a P12.5 billion cement plant in Cebu which will serve the Visayas and Mindanao markets once completed in two years’ time. The Cebu plant will have a capacity of two million metric tons.

Eagle Cement entered the market in 2010 after establishing a newly-built cement plant in San Ildefonso, Bulacan in 2008.

“Right now, we are already offering the most affordable price to our consumer because this is a 100 percent Filipino company. We want to keep in check the prices so that it is affordable to our consumers,” Ang said.

The company became publicly listed yesterday under the ticker symbol “EAGLE” in a deal that was more than three times oversubscribed. 

It raised some P8.63 billion for its maiden offering, a portion of which will be used to finance the construction of its Cebu cement plant. The firm sold 500 million common shares by way of primary offer with an overallotment option of up to 75 million secondary shares.

Eagle Cement opened at P16 per share and closed at P15.30, above its initial public offering price of P15 each share.