Cebu Landmasters P2.9-B IPO ‘oversubscribed’


PROPERTY developer Cebu Landmasters, Inc.’s (CLI) P2.9-billion initial public offering was oversubscribed, with strong demand seen from institutions, brokers and retail clients, its lead underwriter said on Monday.

Ed Francisco, president of BDO Capital and Investments Corp., said there was strong demand during the offer period such that the over-allotment portion was also sold.

“We are quite pleased with how the market has responded to this issue despite being offered in the market together with another great company, but given CLI’s unique investment proposition as a pure VisMin 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,” Francisco said.

“Because of this, we sold the overallotment shares for this IPO. Even then, we are already oversubscribed and more orders are coming in,” he added.

During the offer period from May 19 to 26, CLI sold 505 million firm shares plus the overallotment option of 75 million shares at an offer price of P5.00 per share, for a total amount of P2.9 billion.

The target listing date is June 2, Friday. Proceeds from the share sale will be used to fund CLI’s expansion programs.

CLI is a homegrown Cebuano property firm founded by industry veteran Jose Soberano III in 2003.

April Tan, COL Financial research head, said she is rooting for Cebu Landmasters “because it is a beneficiary of strong demand for housing in the faster growing areas of the Vis-Min region.”

“It also has a strong track record in execution given the experience of Mr. Soberano in real estate development, his familiarity with the Visayas region, and his hands-on involvement in the company and its projects,” she added.

Tan also noted Cebu Landmasters’ impressive track record of fully selling out all its projects within one year of launch and turning over projects within three years of acquisition, saying it has now become the second largest developer in Cebu “despite being a relative newcomer.”


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