Cebu Landmaster’s P2.9B IPO “oversubscribed”
Property developer Cebu Landmasters has seen brisk demand for its P2.9-billion initial public offering, which was oversubscribed as the offer period ended, one of the lead underwriters said.
“We saw very strong demand coming in during the offer period — from institutions, brokers and retail clients,” said Eduardo Francisco, president of BDO Capital and Investment Corp. which acted as the joint lead underwriter and bookrunner along with BPI Capital Corp.
“Because of this, we sold the over-allotment shares for this IPO. Even then, we are already oversubscribed and more orders are coming in,” he said.
The shares were sold from May 19 to 26, and the target listing date is on June 2.
By the end of the offer period, the property developer sold 505 million firm shares plus the overallotment of 75 million shares at P5 per share, bringing the total equity deal to P2.9 billion.
Article continues after this advertisement“We are quite pleased with how the market has responded to this issue despite being offered in the market together with another great company,” Francisco said. “But given CLI’s unique investment proposition as a pure VisMin (Visayas-Mindanao) play on real estate and infrastructure, coupled with its attractive growth prospects, we feel that CLI will be a worthwhile investment and an asset to our capital markets.”
Proceeds from the sale will be used to fund the expansion of this homegrown Cebuano property firm, founded by industry veteran Jose Soberano III in 2003.