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SEC clears Cebu Landmasters P3.8B IPO

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From left: Jose Franco Soberano, Chief Operating Officer of Cebu Landmasters, Inc. (CLI) and Joe Soberano, Chairman and CEO of CLI (CDN PHOTO | CHRISTIAN MANINGO)

CEBU Landmasters Inc. (CLI), Metro Cebu’s number 1 local housing developer, has obtained the Securities and Exchange Commission’s clearance for its P3.8 billion initial public offering to support its expansion plans.

CLI has filed its application with an offer price of up to P6.56 per common share, consisting of 505 million shares, with an over-allotment option of another 75 million secondary shares for stabilization.

The float will be up to 33.84 percent of the company’s total outstanding shares after the IPO, with a market capitalization of up to P11.25 billion.

83% of the IPO proceeds will fund the company’s land acquisition and project development costs, while 15% and 2% of the proceeds will be used for debt repayment and for general corporate purposes respectively.

BDO Capital & Investment Corp. is the issue manager, and together with BPI Capital Corp. are the joint lead underwriters and joint bookrunners.

Founded in 2003 by President and CEO Jose Soberano III, CLI is a developer of vertical and horizontal residential projects, mixed-use office developments and hotels to cover a wide segment of the property market.

To date, CLI has 28 projects completed or in various stages of construction, with a total of 11,141 units in Cebu, Cagayan de Oro and Davao. CLI is the largest local developer in Metro Cebu, based on 2016 CBRE Philippines data (Santos Knight Frank) data. It takes up 11 percent market share only next to Ayala Land at 17 percent and ahead of Filinvest at 8 percent.

The company aims to be the most preferred developer in the VisMin in 3 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 Mactan Cebu. /PR

TAGS: Cebu Landmasters, initial public offering, stock market
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