The cement manufacturer aims to more than triple its authorized capital stock.

Listed cement manufacturer Cemex Holdings Philippines Inc. (CHP) said its board has approved plans to raise as much as $250 million from a stock rights offer.

In a disclosure to the stock exchange, CHP said the offer is in line with its plans to increase its authorized capital stock by more than thrice to improve its capital structure, fund its ongoing solid cement plant expansion as well as improve its balance sheet flexibility.

“Given CHP is currently operating at already high utilization levels, the Solid Cement plant expansion is especially critical in allowing CHP to maintain its market position and continue to benefit from the Philippines’ long-term favorable demand outlook,” CHP said.

The company’s $235 million plant expansion in Antipolo, Rizal will increase CHP’s total capacity to 3.4 million metric tons per year from 1.9 million metric tons.

Under the stock rights offer, CHP will sell new shares to existing shareholders.

CHP has delegated some of its senior management the power and authority to fix the terms and conditions for the rights offering, including the final issue size, the entitlement ratio, offer price and payment terms, among others.

The cement manufacturer aims to more than triple its authorized capital stock from the current P5.2 billion divided into 5.2 billion common shares with a par value of P1 apiece, to P18.3 billion divided into 18.3 billion shares with a par value of P1 apiece.

CHP booked a turnaround net income of P802.32 million in the first half of the year from a net loss of P584.73 million in the same period last year, owing to lower costs and higher revenues. Sales rose four percent to P12.4 billion.

Shares of CHP were down 7.67 percent to P2.77 apiece on Wednesday following the announcement.