Cebu LandMasters Inc., a real estate development company based in Cebu, plans to conduct an initial public offering to raise up to P4 billion in fresh capital, banking sources said Wednesday.
Sources said Cebu LandMasters tapped BDO Capital and Investments Corp., the investment banking unit of BDO Unibank Inc., as financial adviser and underwriter for the maiden share sale.
“The size of the IPO could range between P3 billion and P4 billion,” sources said.
The company, which is primarily engaged in the development of residential, commercial, hospitality, mixed-use and civic projects, plans to file the IPO application with the Securities and Exchange Commission within the year, sources said. The IPO could happen either late this year or early 2017, they said.
Sources said the fund raising activity would be purely for local investors, given the domestic market’s strong appetite for IPOs, following the successful listings of Golden Haven Memorial Parks Inc. and Cemex Holdings Philippines Inc.
Cebu LandMasters’ planned IPO would follow the successful public offering of another Cebu-based firm, Metro Retail Stores Group Inc.
Cebu LandMasters was founded in 2003 by Cebuano entrepreneur Jose Soberano III, whose motivation was to provide for the housing needs of his employees and the middle-income earners of other small-medium companies.
From its first residential subdivision San Josemaria Village in Balamban, the company ventured into condominium projects and office and hospitality projects.
The company launched its first mixed-use development called Base Line Center last year.
Phase one of the development includes the 180-room Citadines Cebu City, which will be managed by Ascott Limited, the world’s largest serviced residence operator. It will also include an upscale condo, prime office spaces and retail spaces.
The company also expanded to Cagayan de Oro City, where it launched a three-tower residential condo complex called MesaVerte Residences.
Philippine Stock Exchange president Hans Sicat earlier said several companies planned to conduct IPOs in the second half, given the upward trend in the market and increased volume of trading at the stock exchange.
Pilipinas Shell Petroleum Corp., a unit of Royal Dutch Shell Plc., on Monday filed an IPO application with SEC that will enable it to raise up to P29.7 billion in proceeds.