Cebu Landmasters, Inc. Raised P4.28 Billion in FOO, Debuts Preferred Shares in the PSE

Leading developer in VisMin Cebu Landmasters Inc. (CLI) raised over P4.28 billion in its follow-on-offering of preferred shares, having to exercise its oversubscription option to meet demand.

At a listing ceremony held at the Philippine Stock Exchange (PSE) on April 12, 2024, the company formally listed its Series A-1 and Series A-2 preferred shares. China Bank and BPI Capital Corporation collaborated as joint issue managers. As joint lead underwriters and joint bookrunners, PNB Capital and RCBC Capital join them.

The preferred shares offer dividend rates of 7.585% p.a. for the 4-year Series A-1 and 8.25% p.a. for the 7-year Series A-2. These proceeds will be instrumental in supporting CLI's strategic expansion initiatives and ongoing project developments.

CLI's Chief Finance Officer Grant Cheng notes, “The success is a strong indicator of the growing market trust and confidence in the company’s proven track record of generating returns through its business.”

“We have exceeded our fundraising targets through this follow-on offering, and now we are making strategic decisions on how to allocate these fresh funds that will fuel CLI’s strong expansion plans and several exciting projects,” stated Cheng.

CLI Chairman and CEO Jose Soberano III also underscored, “Our engagement with the capital markets has been instrumental in fueling our growth trajectory. From our IPO for common shares in 2017 to a maiden bond offering in 2022, and now this initial issuance of preferred shares, we have strategically diversified our capital-raising efforts.

CLI has continuously produced growth and earnings for many years. The publicly traded corporation recently reported P4.64 billion in consolidated net income, a 29% year-over-year rise. A noteworthy 13% increase in net income, from P3.17 billion to P3.58 billion, was also reported to shareholders. This increase was mainly caused by a strong 20% rise in consolidated revenue, or P18.8 billion, which came from hotel operations, leasing income, and real estate sales.

In an effort to keep adding value for its clients and investors, CLI also announced the launch of its first overseas partnership with the well-known real estate company NTT UD Asia Pte. Ltd., located in Japan. The development of a prominent two-tower high-end residential building in the heart of Cebu City is the goal of this partnership.

Cheng highlighted that, “we are looking forward not just to more project launches this year but also expansion to new areas.”

During its follow-on-offering, Cebu Landmasters was able to raise P4,280,340,000 through the sale of its preferred shares and oversubscription option shares.