Cebu Landmasters prices IPO at P5 per share

Cebu’s largest homegrown property developer Cebu Landmasters Inc. (CLI) has set its initial public offering at a price of P5 per share, allowing the real estate firm to raise up to P2.9 billion in fresh funds for expansion in Visayas and Mindanao.

Founded by property veteran Jose Soberano in 2003, will offer 505 million shares and earmarked another 75 million for over-allotment option.

“We are excited to bring Cebu Landmasters to the market at this price,” said Eduardo Francisco, president of BDO Capital & Investment Corp., the issue manager and joint lead underwriter and bookrunner with BPI Capital Corp.

“Demand was strong with several well-respected funds committing to the vision of the Soberano family,” he added in a press statement after the IPO price-setting late Friday.

Francisco said CLI ran an “excellent business” that served as an inspiration to entrepreneurs aspiring to go public, with the pricing a “direct play on the Vis-Min (Visayas-Mindanao) growth story” and the company itself. He said this company was “poised to deliver its goal to be Vis-Min’s leading developer by 2020.”

“Our books are fully covered, but we will set aside shares for retail (investors) to come in during the offer,” ge said.

The strong demand and quality of investors reflected the “exceptional property development business the Soberanos have built over the past decade,” said Reggie Cariaso, senior managing director of BPI Capital Corp. “It also shows the market wants more exposure to the fast growing Vis-Min market” with investors to “find the pricing a good way to participate in the continued growth of the company and the region.”

CLI’s offering will run from May 19 to 26 and listing will be on June 2. Public roadshows will be held on May 17 in Makati Shangri-La, May 18 in Cebu City Marriott Hotel and May 19 in Marco Polo Davao.

Primary proceeds will be used to mainly fund land acquisition and development costs for new and ongoing projects, based on the company’s prospectus. Some will also fund debt repayment and general corporate purposes.

In 2016, CLI booked a net income of P702.32 million. It has grown at a compounded annual growth rate (CAGR) of 150 percent since 2012. Sales turnover last year stood at P2.18 billion while operating profit ended at P849.7 million, translating to a CAGR of 61.47 percent and 116.82 percent, respectively.

CLI has 13 projects under different stages of development and construction while six more projects being planned for development in the near future.