Cebu Landmasters said in a statement it planned to sell 505 million common shares, with an option to issue another 75 million shares, at P6.56 per share, in case of strong demand.
This would represent 34 percent of the company’s outstanding common shares, post-IPO.
The company said of the firm offer shares, 430 million are new shares forming the primary tranche and 75 million are existing shares forming the secondary tranche.
It said proceeds from the fund raising activity would be used for land acquisition and developments in five key cities across 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,” Cebu Landmasters president and chief executive Jose Soberano III said.
A 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 diversified from the residential segment into commercial, hospitality, industrial and mixed-use product offerings in 13 years, further distinguishing it from other regional real estate players.
By Jenniffer B. Austria | The Manila Standard | February 20, 2017