CLI’s oversubscribed offering raises PHP4.28 billion

Cebu Landmasters Inc. (CLI), a leading property developer in Visayas and Mindanao, has successfully generated PHP 4.28 billion through an oversubscribed follow-on offering of preferred shares. This financial move underscores the market’s confidence in CLI’s growth potential and its strong foothold in the VisMin region.

On April 12, 2024, CLI marked a significant milestone by listing its Series A-1 and Series A-2 Preferred shares on the Philippine Stock Exchange. The demand was so robust that the company tapped into its oversubscription option. BPI Capital Corporation and China Bank steered the issue, while PNB Capital and RCBC Capital played pivotal roles as joint lead underwriters and bookrunners.

Investors were drawn to the competitive dividend rates offered—7.585% per annum for the 4-year Series A-1 and 8.25% per annum for the 7-year Series A-2—reflecting CLI’s stable and promising financial position.

“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,” stated CLI’s Chief Finance Officer Grant Cheng. This offering, he suggests, sets the stage for the allocation of fresh funds vital for bolstering the company’s aggressive expansion strategies and its ambitious project pipeline.

CLI’s Chairman and CEO Jose Soberano III also commented on the significance of capital market engagements for the company’s upward growth. He recalls the journey from the initial public offering in 2017 to the bond offering in 2022, and now the preferred shares issuance, as strategic steps in diversifying their capital-raising approaches.

The company’s financial disclosures further bolster investor confidence, showcasing a 29% surge in consolidated net income year-on-year and a 20% increase in consolidated revenue. These impressive figures are fueled by robust real estate sales, hotel operations, and leasing income.

CLI also captured attention with its announcement of a high-profile partnership with Japan’s NTT UD Asia Pte. Ltd., signaling its entry into international collaborations and a commitment to upscale property developments, starting with a prestigious dual-tower residential endeavor in the heart of Cebu City.

“We are looking forward not just to more project launches this year but also expansion to new areas,” Cheng reveals, outlining a vision that seeks to cement CLI’s position as a major player in the regional real estate market and beyond.