LISTED property developer Cebu Landmasters, Inc.’s (CLI) board approved a move to reallocate the unused proceeds from its recent follow-on offering (FOO) to project development as part of the company’s expansion efforts.
The FOO proceeds, valued at P3.66 billion, will now be used for land acquisitions, project development expenditures, and general corporate expenses, CLI said in a regulatory filing on Thursday.
Of the total, P1.91 billion will be used for land acquisitions, P1.35 billion for project development expenses, and P395.46 million for general corporate expenses.
“These opportunities have emerged as critical components of the company’s expansion strategy. The original allocation of these proceeds was intended for specific projects that have since secured committed financing through approved term loans or are in the advanced stages of obtaining such financing,” CLI said.
According to CLI, the re-allocation allows the company to “leverage its financial flexibility to seize high-priority growth opportunities that align with its long-term objectives.”
“This reallocation is consistent with CLI’s ongoing commitment to prudent financial management and its strategic focus on maximizing shareholder value,” it said.
In April, CLI raised P4.28 billion from its FOO, which consisted of four-year Series A-1 shares and seven-year Series A-2 shares. Series A-1 shares had a dividend rate of 7.585% per annum, whereas Series A-2 shares were priced at 8.25% per annum.
The shares are listed on the Philippine Stock Exchange.
For the first half, CLI recorded a 24% jump in its attributable net income to P1.7 billion as revenue increased by 24% to P11.31 billion.
The company’s net income grew through ongoing construction progress, a substantial rise in hotel and leasing revenues, an increase in new units qualifying for revenue recognition, and a one-off lot sale.
CLI is a property developer in Visayas and Mindanao. Its portfolio includes residences, offices, hotels, resorts, mixed-use developments, and townships.
On Thursday, CLI shares were unchanged, ending at P2.60. — Revin Mikhael D. Ochave
