The P2.9-billion initial public offering of Cebu Landmasters Inc. was nearly two times oversubscribed, encouraging the Cebu-based property developer to exercise the over allotment option, an underwriter handling the deal said Monday.
“We are very happy with the demand. We are almost two-times oversubscribed and we exercised the oversubscription option,” BDO Capital and Investments Corp. president Eduardo Francisco said in a mobile message.
He noted a strong takeup for Cebu Landmasters shares even as the offer period overlapped with the P8.6-billion maiden share offering of Eagle Cement Corp.
The Cebu-based developer, founded by property veteran Jose Soberano, offered 505 million shares and another 75 million as an over-allotment option, at P5 apiece.
Proceeds from the primary shares offering will be used to fund land acquisition and development costs for new and ongoing projects in the Visayas and Mindanao, debt repayment and general corporate purposes.
The company, which aims to be the leading and most preferred local developer in the Visayas and Mindanao by 2020, lined up several residential, office and mixed-use projects this year.
It plans to launch projects in Cagayan de Oro, Davao, Dumaguete, Iloilo, Bacolod and Bohol.
The property firm is also expanding its hotel portfolio, after it signed a partnership with Scotts Philippines Inc., a wholly-owned subsidiary of The Ascott Limited, the world’s largest serviced residence operator.
Cebu Landmasters will develop Citadines Cebu City, with Ascott as the hotel operator. Citadines Cebu City will house over 180 rooms, of which 92 condotel units will be offered for sale and 88 units will be retained by the company.
The company plans two more hotel projects.