th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

With 13 Completed Projects, Cebu Property Developer Rolls Out IPO

Cebu Landmasters will sell at least 505 million shares at an initial offer price of Php5 apiece
By Lorenzo Kyle Subido |

 

 

Cebu-based property developer Cebu Landmasters Inc. will be offering its shares to the public from May 19 to May 26 at an initial price of Php5 apiece. It is planning to sell 505 million shares for the initial public offering (IPO) and is poised to sell 75 million more in case of over-allotment.

 

The company is planning to use a bulk of the funds from the IPO to acquire at least 12 parcels of land in key cities in the Visayas and Mindanao for future projects. The rest of the funds raised will be used to partially repay the company’s debts as well as to invest in the company’s joint ventures and associates.

 

BDO Capital and Investment Corp. serves as the IPO’s issue manager. It also serves as a joint lead underwriter alongside BPI Capital Corp.

 

 

Related story: 5 Things to Know Before Investing in IPO Stocks 

 

 

Cebu Landmasters was established in 2003 by the Soberano family, who serve as the company’s board of directors and principal shareholders. After the IPO and assuming all 580 million shares are sold, 33.8 percent of the company’s shares will belong to the public, with the rest being owned by the Soberano family and other existing shareholders.

 

The company claims to be the largest property developer based in Cebu. It currently has 13 completed and 15 ongoing projects ranging from residential properties to office buildings, all of which are located in key cities in the Visayas and Mindanao. The company also has a hotel project in the pipeline.

 

Cebu Landmasters’ success is indicative of the growing real estate market in the Visayas and Mindanao regions, particularly in Metro Cebu. Citing a report by property consultancy Santos Knight Frank last September 2016, the residential market in Cebu started to see massive growth in 2010, when 13 residential towers were completed, it said.

 

In 2012, 7,715 units were added to Cebu’s residential condominium supply, the largest increase in the past eight years. “From years 2013 to 2016, the growth of the supply of residential condominiums stabilized between 3,100 to 3,600 units being added every year,” Cebu Landmasters said in its preliminary prospectus.

 

Riding the property boom in Metro Cebu as well as in other major cities in the Visayas and Mindanao, Cebu Landmasters experienced a 40.9-percent increase in revenue last year, ending 2016 with Php2.2 billion. Likewise, its net income rose by 30.7 percent to Php702.3 million in the same period.

 

 

According to the same report by Santos Knight Frank, Cebu Landmasters commanded 11 percent of the supply of residential condominium units in Metro Cebu with 3,150 units, second only to Ayala Land. It is also among the top three in terms of residential condominium units sold in Metro Cebu along with Ayala Land and Filinvest Land, having sold over 2,100 units.

ADVERTISEMENT - CONTINUE READING BELOW

 

Cebu Landmasters will debut on the Philippine Stock Exchange on June 2. It marks the third listing of 2017, coming after Wilcon Depot last March 31 and Eagle Cement Corp. on May 29.

 

Interested investors are advised to read through the company’s preliminary prospectus for more information on the company and the offer as well as consult investment professionals on the rewards and risks of investing in stocks.

 

 

*****

 

 

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

Latest Articles

Property Tycoon Urges Php200-300 Hike in Daily Wages for Construction Workers

A boon for labor, the proposal could be tough for small construction firms that cannot absorb the...

byPauline Macaraeg | October 17, 2017 11:00:00

Financial Adviser: 5 Retail Lessons Every Startup Can Learn from the Co-Founder of Lazada

Lazada is the largest e-commerce destination in the country today. How did they do it?

byHenry Ong | October 17, 2017 11:00:00

The Most Powerful Word in Business Is 'No'

Focus in business is one of the key ingredients to success. Focus comes from the word no

byTim Denning | October 17, 2017 08:00:00

How One Entrepreneur Found Lasting Success By Focusing on 3 Basic Business Principles

A single-minded focus on revenue can blind you to how badly your business is really doing

bySerenity Gibbons | October 17, 2017 06:00:00

Use This Successful Entrepreneur's Scheduling Secret to Have Your Most Productive Day

Monitor your energy levels to know when to attempt your biggest tasks

byNina Zipkin | October 17, 2017 02:00:00

22 Influential Matriarchs From Notable Filipino Families

We round up a list of inspiring and accomplished women who have made an impact on Philippine society

byHannah Lazatin and Paolo Chua for TownandCountry.ph | October 17, 2017 00:00:00

Is Your Company Among 6 PH Firms Included in Forbes’ List of the World’s Best 500 Employers?

The local companies include the country’s biggest banks and property developers

byLorenzo Kyle Subido | October 16, 2017 17:00:00

Bigger and “Instagrammable” Stores Driving Greenwich To Growth

Franchise the homegrown pizza-and-pasta brand for a minimum fee of Php1 million per store

by | October 16, 2017 16:00:00

3 Takeaways on Digital Transformation from IMMAP’s DigiCon 2017

The conference chairman sums up the highlights of the three-day mobile marketing summit

byLorenzo Kyle Subido | October 16, 2017 12:00:00

3 Ways to Build Entrepreneurial Resilience for the Next 'Wave' of Challenges

When the problem is what you didn't do, the solution begins with figuring out what to do next

byJeff Boss | October 16, 2017 08:00:00

If You're Going to Fight, Fight Early

Facing conflict head on, asserting yourself and getting on the same page is critical to success

byKevin Hart | October 16, 2017 06:00:00

Here's Why Companies Lose 17% of Women Employees at Mid-Career

While many women take a career off-ramp for different reasons, most just don't want to be "stuck"

byAmanda Schnieders | October 16, 2017 02:00:00