Cebu Landmasters Inc. (CLI), a leading developer in the Visayas and Mindanao, raised P4.28 billion from its follow-on offering of preferred shares on strong investor demand.
Philippine Stock Exchange president and chief executive Ramon Monzon said during the listing ceremony on Friday that the offering was 1.43 times oversubscribed from its base offer of P3 billion.
This prompted the company to exercise a portion of its oversubscription option to meet demand.
The preferred shares offer dividend rates of 7.585 percent per annum for the four-year Series A-1 and 8.25 percent per annum for the seven-year Series A-2.
CLI chief finance officer Grant Cheng said 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,” said Cheng.
The company will use the proceeds from the offer for expansion plans and project developments.
The property firm earmarked P14.5 billion for 2024 capital expenditure and planned to launch P27 billion worth of projects.
It also plans to venture into its first residential project in Luzon this year.
CLI president and chief executive Jose Soberano III said the preferred shares offering marks the company’s return to the capital markets since its initial public offering in 2017.
“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,” Soberano said.
BPI Capital Corp. and China Bank Capital served as joint issue managers. They are joined by PNB Capital and RCBC Capital as joint lead underwriters and joint bookrunners.