Cebu Landmasters debuts on Philippine Stock Exchange

Cebu Landmasters Inc. (CLI) took the spotlight at the Philippine Stock Exchange (PSE) in Makati City recently, as they became the first homegrown, Cebubased real estate developer to ring the bell, marking its listing on the trading bourse.

Cebu Landmasters Inc. (CLI) has taken a bold step and appeared on the spotlight at the Philippine Stock Exchange (PSE) last June 2 in Makati City, making itself as Cebu’s first home-grown real estate developer to mark the beginning of its stock trading.

To mark its aggressive expansion plans in the key areas of Visayas and Mindanao, CLI led a ceremony, which heralds its entry alongside other well-established and well-respected companies. In 2016, CLI’s net income reached more than P702 million, representing a compounded annual growth rate of 150 percent since 2012.

Jose R. Soberano III, CLI chairman, president and CEO, led the ceremony, which started Cebu Landmasters debut on the Philippine Stock Exchange alongside other well-established and respected companies. CLI is the third company to go public this year, following Wilcon Depot and Eagle Cement.

The ceremony last June 2 started with a festive Sinulog atmosphere and a dance that gives tribute to Señor Santo Niño for watching over Cebuano homes. The lively and colorful performance of the University of Cebu Dance Company, led by reigning festival queen Marla Pino Alforque, was well applauded.

Sinulog Idol winners Danielle Mae Ozaraga, Genevieve Roche Flores and grand champion Aian Uba culminated the event by singing the “I love Cebu Landmasters” official jingle.

CLI IPO Oversubscribed

The strong demand from investors have led to Cebu Landmasters Inc.’s initial public offering being oversubscribed, according to the Lead Underwriters.

“We saw very strong demand coming in during the offer period -- from institutions, brokers and retail clients. The demand was strong with several well-respected funds committing to the vision of the Soberano family,” said Ed Francisco, president of BDO Capital and Investment Corp., the joint lead underwriter and bookrunner along with BPI Capital Corp.

Reggie Cariaso, senior managing director of BPI Capital Corp., the other joint lead underwriter, said that “the strength of the demand and the high-quality investors attracted to Cebu Landmasters’ IPO demonstrates the exceptional property development business the Soberanos have built over the past decade.”

“We like Cebu Landmasters because it is a beneficiary of strong demand for housing in the faster growing areas of the Vis-Min region,” said April Tan, head of research of COL Financial. “It also has a strong track record in execution given the experience of Mr. Soberano in real estate development, his familiarity with the Visayas region and his hands-on involvement in the company and its projects,” Tan added.

CLI’s proven track record

Formed only in 2003, CLI has grown to become the number 1 local housing developer in Cebu, according to CBRE Philippines (now Santos Knight Frank), with a market share of 11 percent, next to Ayala Land.

In 2016, CLI’s net income reached P702.32 million, representing a compounded annual growth rate of 150 percent since 2012.

Sales stood at P2.18 billion, while the operating profit was pegged at P849.7 million, translating to a CAGR of 61.47 percent and 116.82 percent, respectively.

“The future looks brighter with the current national government’s push on its build, build, build economic program, especially in the Visayas and Mindanao,” said Soberano, who noted that CLI has already completed 28 projects to date with 14 projects on the drawing boards between now and 2020.

In a market that makes up 27.3 percent of the country’s gross domestic product (GDP), Soberano knows he has an advantage over Manila-based developers. He is deeply familiar with the needs and wants of the market: the price point, connections, partnerships and the buyers.

“Real estate will be a key driver in economic growth in the hot spot cities of Vis-Min. We feel that these are places with strong potentials and where there is a need for more housing,” Soberano said. With this, we are broadening our expansion to rapidly growing cities like Metro Davao, Cagayan de Oro, Iloilo, Bacolod, Dumaguete and of course Cebu,” he adds.

The demand for good housing rises with the growing incomes in the region and the spike in OFW remittances. The influx of tourists and BPO companies is also creating a need for more commercial and mixed-use developments.

CLI priced its initial public offering at P5.00 per share, bringing its total offer size up to P2.9 billion. It offered 505 million shares and an additional 75 million shares as an over-allotment option. Proceeds from the IPO will be used to support the company’s expansion to key cities in Visayas and Mindanao where the company plans to pour P12 billion in the next three years.

With the ringing of the bell, Soberano knows the event would not just be about being the first homegrown Cebuano developer to be publicly listed. For the CLI founder, this is a milestone in realizing the company’s vision of building more quality homes in the Visayas and Mindanao, an important step to making CLI the most preferred developer in the Visayas and Mindanao by 2020.