Real estate firm Cebu Landmasters wants to go public
MANILA, Philippines – Cebu Landmasters Incorporated is planning to go public this May to raise funds for land acquisition and development, as it eyes expansion to 5 key cities in the Visayas and Mindanao.
The leading homegrown developer in Metro Cebu intends to raise up to P3.8 billion from an initial public offering (IPO) this May.
Cebu Landmasters said in a statement that it plans to sell 505 million common shares with an overallotment option of 75 million shares at an offer price of up to P6.56 per share.
This represents up to 34% of the company's outstanding common shares, post-IPO. (READ: SM Prime, Ayala Land to develop joint master plan for Cebu)
Of the firm offer shares, 430 million are new shares forming the primary tranche, while 75 million are existing shares forming the secondary tranche.
Aside from land acquisition and development, part of the proceeds will also be used for debt repayment and working capital requirements.
BDO Capital is the sole issue manager for the company's maiden share offering.
Joint lead underwriters and joint bookrunners are BDO Capital and BPI Capital.
Cebu Landmasters is the first Cebu-based real estate developer to apply for an IPO, and the leading local real estate developer in the Metro Cebu residential condominium arena.
It accounts for 11% market share of the total supply of residential condominium units in Metro Cebu, second only to Ayala Land, according to a market study by CBRE Philippines.
In 13 years, Cebu Landmasters diversified from the residential segment into commercial, hospitality, industrial, and mixed-use product offerings.
"We will use our flexibility to create new developments in the cities of Davao, Cagayan de Oro, Dumaguete, Bacolod, Iloilo, and new Cebu locations," said Cebu Landmasters president and CEO Jose Soberano III.
"These projects will maximize the demand and supply indicators in each location with the best uses for each site," he added.
In 2016, Cebu Landmasters generated revenues of P2.17 billion and net profits of P702 million.
Its recent projects include residential condominiums Mivesa Garden Residences and Midori Residences, identified by CBRE as the top-selling projects in Metro Cebu.
It also sold office projects and partnered with The Ascott Limited to develop Citadines Cebu City, which will open by 2019 with 180 serviced apartments. – Rappler.com