Cebu Landmasters going for P3.8B IPO in May

Property developer Cebu Landmasters Inc. (CLI) is going for an initial public offering (IPO) valued at P3.8 billion on the Philippine Stock Exchange in May, the company said on Monday.

CLI it filed an IPO prospectus before the Securities and Exchange Commission (SEC), detailing the plan to sell 505 million common shares at P6.56 apiece, with an over-allotment option of 75 million shares.

The mid-May IPO will include 430 million primary shares and 75 million secondary shares from existing shareholders, which would represent up to 34 percent of outstanding stocks post-IPO.

According to the company, the proceeds from the share sale will fund land acquisitions and development costs under an expansion plan covering five key cities in the Visayas and Mindanao. Part of the proceeds will also be used for debt repayment and working capital.

CLI has tapped BDO Capital as sole issue manager for IPO, and as joint lead underwriter and joint bookrunner with BPI Capital.

"CLI 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," the company said.

It generated a revenue of P2.17 billion in 2016 and a net profit of P702 million.

Also pending before the SEC are IPO applications from Pure Energy Holdings Corp. (P1.58 billion), Wilcon Depot Inc. (P7.92 billion), Xeleb Technologies Inc. (P751.8 million) and Audiowav Media Inc. (P2.66 billion).

Also planning to do IPOs are TVI Resource Development (Philippines) Inc. (P1.66 billion), Pointwest Technologies Corp. (P2.21 billion), and Green Power Panay Philippines Inc. (P222.8 million). — Jon Viktor Cabuenas/VDS, GMA News