Cebu Landmasters Inc. (CLI), a leading property developer in Metro Cebu, intends to raise P3.8 billion from an initial public offering (IPO) in May to finance an expansion plan, debt repayment and working capital.
In a statement on Monday, CLI said it submitted a prospectus to the Securities and Exchange Commission (SEC) covering its maiden share sale of 580 million common shares at P6.56 per share.
The offer shares consist of 505 million base offer and 75 million in case of an oversubscription. The base offer consists of 430 million primary shares and 75 million secondary shares from existing shareholders.
The offer shares are equivalent to 34 percent of shares outstanding post-IPO. The share sale is targeted in the second half of May 2017.
BDO Capital & Investment Corp. will serve as sole issue manager and with BPI Capital Corp. as joint bookrunners.
The Cebu-based property developer has projects within the Metro Cebu residential condominium arena. It accounts for 11 percent market share of the total supply of residential condominium units in Metro Cebu, second only to Ayala Land Inc., according to a market study by CBRE Philippines (now Santos Knight Frank).
CLI has diversified from residential developments into commercial, hospitality, industrial and mixed-use projects in the Visayas and Mindanao.
“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 3rd said.
The company plans to developed high-end, New York inspired residential projects in highly urbanized areas like Cebu IT Park. It intends to offer mid-market residential condominiums that meet the needs of business process outsourcing (BPO) employees and overseas Filipino workers (OFW) buying properties in rapidly urbanizing cities such as Davao and Cagayan de Oro.
It has set its sights on Next Wave Cities such as Dumaguete, Iloilo and Bacolod where BPO firms are locating and fueling the economy together with OFW remittances.
In 2016, CLI posted a net income of P702 million and revenue of P2.17 billion.
As a homegrown company, CLI is able to tap the best suppliers and the best deals in the Visayas and Mindanao and pass on the savings to customers, Soberano said.
“Being value-focused Visayans ourselves, we have a good idea of the kind of spaces clients appreciate and how much they will willingly pay for them,” he said.