THE Securities and Exchange Commission (SEC) has given the green light to Cebu Landmasters, Inc. and Eagle Cement Corp. (ECC) to conduct their initial public offerings (IPO) on the local market.
In a statement on Friday, Cebu Landmasters, Inc., (CLI) a Cebu-based property developer, said it has obtained SEC clearance for its P3.8-billion IPO, proceeds of which will be used to support its expansion plans.
SEC said it approved the IPO applications in an en banc session on Thursday.
The regulator authorized CLI to sell 580 million shares at an offer price of P6.56 per share, consisting of 430 million primary shares, 75 million secondary shares, and another 75 million shares as an overallotment option.
About 83 percent of the IPO proceeds will fund the company’s land acquisition and project development costs, while the remainder will be used for debt repayment, general corporate purposes, and working capital.
CLI appointed BDO Capital and Investment Corp. as its issue manager, as well as the joint lead underwriter and joint bookrunner along with BPI Capital Corp.
To date, CLI currently has 28 projects completed or in various stages of construction. It is the largest local developer in Metro Cebu, based on 2016 CBRE Philippines (now Santos Knight Frank) data. In the residential condominium segment, it has 11 percent market share in terms of units sold, next only to Ayala Land at 17 percent and ahead of Filinvest Land at eight percent.
“The company aims to be the most preferred developer in the Visayas-Mindanao region in three years, and 2017 is shaping to be a banner year for the company as it expands further to Davao, Cagayan de Oro, Dumaguete, Iloilo, Bacolod and its Mactan,” CLI said.
SEC also approved the P9.2-billion IPO of Eagle Cement, the country’s fourth largest cement producer which is controlled by business tycoon Ramon Ang.
Eagle Cement earlier said it will use the IPO proceeds to finance the establishment of a cement plant in Cebu, which will have a 2 million metric ton annual capacity. The said project is estimated to cost P12.5 billion, Eagle Cement said.
According to a document from the SEC, Eagle Cement was authorized to sell up to 575 million shares at a price of P16 per share. The offer will consist of 500 million primary shares and up to 75 million secondary shares for overallotment.
Eagle Cement operates the country’s largest cement factory in a 200-hectare complex in Barangay Akle, San Ildefonso, Bulacan which also includes a quarrying site with a reported 300 million MT of reserves.
Its cement complex is able to cover and handle all stages of cement production from limestone quarrying, clinker production, additives mixing and market distribution.
The company is also building a third production line in Bulacan that will add two million MT or 50 million bags of cement to its capacity.