Property developer Cebu Landmasters Inc. (CLI) priced its planned P5-billion preferred shares offering amid strong demand from investors.
CLI said in a disclosure to the stock exchange Friday the Series A-1 preferred shares would have an initial dividend rate of 7.5850 percent per annum, while the Series A-2 preferred shares would carry an initial dividend rate of 8.25 percent.
The public offer period is scheduled from March 19 to April 2, 2024, subject to regulatory approval of the Philippine Stock Exchange and on the condition of receipt of the permit to sell from the Securities and Exchange Commission.
CLI earlier planned to issue 3 million Series A preferred shares, with an oversubscription option for another 2 million at P1,000 apiece.
It will use the net proceeds from the fundraising activity for project development or capital expenditures for various real estate projects and for general corporate purposes.
The property firm hired BPI Capital Corp., China Bank Capital Corp., PNB Capital and Investment Corp. and RCBC Capital Corp. as joint lead underwriters for the offer.
CLI provides housing needs to the high-end, middle, economic and socialized housing segments.
It had nearly 100 projects in various stages of construction as of Dec. 31, 2022. The projects are spread across Cebu, Bohol, Misamis Oriental, Negros Oriental, Negros Occidental and Davao.
It plans to launch its first residential project in Luzon this year.
CLI obtained approval from the antitrust body to proceed with its joint venture with a Singapore-based builder for the construction of high-end residences in Cebu City in February.
