Cebu Landmasters Inc. (CLI) raised over ₱4.28 billion in its follow-on offering of preferred shares, having to exercise its oversubscription option to meet demand.
The company formally listed its Series A-1 and Series A-2 Preferred shares on April 12, 2024, after a listing ceremony at the Philippine Stock Exchange (PSE). BPI Capital Corporation and China Bank served as joint issue managers. They are joined by PNB Capital and RCBC Capital as joint lead underwriters and joint bookrunners.
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.” For years, CLI has consistently delivered growth and profits. Recently, the listed company disclosed a 29% increase in consolidated net income year-on-year, amounting to PHP 4.64 billion. Shareholders also witnessed a notable 13% rise in net income, reaching PHP 3.58 billion, compared to PHP 3.17 billion in the previous year. This growth was primarily driven by a robust 20% uptick in consolidated revenue, totaling PHP 18.8 billion, fueled by real estate sales revenues, hotel operations, and leasing income.
To continue bringing in more value to its investors and customers, CLI also unveiled its inaugural international collaboration with the renowned Japan-based real estate firm NTT UD Asia Pte. Ltd. This partnership aims to develop a prestigious 2-tower high-end residential project situated at the core of Cebu City.
Cheng highlighted that, “we are looking forward not just to more project launches this year but also expansion to new areas.”