Cebu Landmasters seeks P3.8B IPO

Cebu-based property developer Cebu Landmasters Inc. (CLI) plans to raise as much as P3.8 billion from a stock debut this May, aiming to boost funds for expansion in key cities in Visayas and Mindanao.

Quoting a prospectus it submitted to the Securities and Exchange Commission on Monday, CLI said in a press statement that it would like to sell 505 million common shares with an overallotment option of 75 million shares at a price per share of as much as P6.56.

The proposed IPO – which is targeted by mid to late May this year, will bring to public hands around 34 percent of CLI’s total equity.

Of the offer shares, 430 million shares will comprise primary shares while 75 million will consist of secondary shares.

BDO Capital was mandated as the sole issue manager for CLI’s stock market debut. Joint lead underwriters and joint bookrunners are BDO Capital and BPI Capital.

CLI is the first Cebu-based real estate developer to apply for an IPO and the leading local real estate developer in the Metro Cebu residential condominium arena. It has an 11 percent market share of the total supply of residential condominium units in Metro Cebu, second only to Ayala Land, based on a market study by CBRE Philippines (now Santos Knight Frank).

In the last 13 years, CLI has diversified from the residential segment into commercial, hospitality, industrial and mixed-use product offerings further distinguishing it from other VisMin real estate players.

“We will use our flexibility to create new developments in the cities of Davao, Cagayan de Oro, Dumaguete, Bacolod, Iloilo and new Cebu locations. These projects will maximize the demand and supply indicators in each location with the best uses for each site,” CLI president and chief executive officer Jose Soberano III said.

In 2016, CLI generated a net profit of P702 million out of P2.17 billion in revenues. Recent developments include residential condominium projects Mivesa Garden Residences and Midori Residences, identified by CBRE as the top-selling projects in Metro Cebu. It also sells office projects. It has also teamed up with The Ascott Limited to develop Citadines Cebu City, which will open 180 serviced apartments by 2019.