MANILA – Cebu Landmasters Inc. (CLI), Metro Cebu’s leading local housing developer, has obtained the Securities and Exchange Commission’s clearance for its P3.8-billion initial public offering to support its expansion plans.
CLI filed its application with an offer price of up to P6.56 per common share, consisting of 505 million shares, with an over-allotment option of another 75 million secondary shares for stabilization.
The float will be up to 33.84 percent of the company’s total outstanding shares after the IPO, with a market capitalization of up to P11.25 billion.
Eighty-three percent of the IPO proceeds will fund the company’s land acquisition and project development costs, while 15 percent and two percent of the proceeds will be used for debt repayment and for general corporate purposes and working capital, respectively.
BDO Capital & Investment Corp. is the issue manager.
BDO Capital and Investment and BPI Capital Corp. are also the joint lead underwriters and joint bookrunners.
Founded in 2003 by real estate industry veteran Jose Soberano III, its president and chief executive officer, Cebu Landmasters is a developer of vertical and horizontal residential projects, mixed-use office developments and a hotel to cover a wide segment of the property market.
To date, Cebu Landmasters has 28 projects completed or in various stages of construction, with a total of 111,141 units.
The company aims to be the most preferred developer in the Visayas Mindanao region in three years, and 2017 is shaping to be a banner year for the company as it expands further to Davao, Cagayan de Oro, Dumaguete, Iloilo, Bacolod and its Mactan.
