MANILA, Philippines – A Cebu-based real estate developer is set to list its shares on the Philippine Stock Exchange in May. Cebu Landmasters, Inc. has advanced its plan to go public. It has already sought regulatory approval in order to do an initial public offering for P3.8 billion.
The locally-grown developer said it submitted a registration statement with the Securities and Exchange Commission (SEC) on Monday. The company is set to make public its 505 million common shares. This includes 75 million for overallotment.
Cebu Landmasters is intending to issue the shares that will represent 34 percent of the company’s outstanding common stocks. The shares will begin to be sold publicly by the middle of May. It will then list the shares on the Philippine Stock Exchange.
The primary offer of the company will comprise 430 million new shares. An oversubscription option of 75 million shares will accompany the offer that is currently held by existing owners.
The company fixed the maximum price of the securities at P6.56 per share. It selected BDO Capital & Investment Corp. as the manager of its initial primary offering. BPI Capital Corp., together with BDP Capital, will be the lead underwriter and book-runner.
Cebu Landmasters is the first real estate developer based in Cebu to file an application for an IPO. The company developments cover about 11 percent of the total supply of Metro Cebu residential condominium units.
In terms of market share, the Cebu-based company trails only Ayala Land, Inc. as reported by property consultancy Santos Knight Frank. Proceeds from the public offering will boost the company’s expansion in five different key cities in Mindanao and Visayas.
Proceeds will be allocated to development costs, land acquisitions, debt repayment and various working capital requirements. The company had done diversification in its offerings ever since it started its operations 13 years ago.
Last year, the company booked a net income of net income P702 million. Revenues last year totaled P2.17 billion.
Cebu Landmasters President and Chief Executive Officer Jose R. Soberano III said that it will use its flexibility to create new developments. He added the main focus of the developments will be in the cities of Davao, Dumaguete, Cagayan de Oro, Iloilo, Bacolod, and new Cebu locations.
He stressed that the projects of the company aim to maximize the demand and supply indicators in the in project locations. The real estate developer adds to the nine other companies seeking approval from the Securities and Exchange Commission to go public. In January, The Big Chill, Inc. announced its intent to list its shares on the PSE with a maiden share sale of P600 million.