CEBU Landmasters Inc. (CLI) obtained the Securities and Exchange Commission’s clearance for its P3.8-billion initial public offering to support its expansion plans.

SEC has given CLI authority to sell 580 million shares priced at P6.55 per share. The company will offer 430 million in primary shares, 75 million secondary shares and another 75 million shares for overallotment.

CLI Chairman Jose Soberano III welcomed the approval of the company’s IPO application, which makes Landmasters the first Cebu-based real estate developer to go public.

“The SEC approval is one milestone we’re happy to achieve and there a few more steps to attain before CLI finally gets to be publicly listed. We take this with pride as we share this with our stakeholders in Cebu and the rest of the VisMin cities we have presence in,” said Soberano in a text message to SunStar Cebu yesterday.

Soberano said they are awaiting the approval of the Philippine Stock Exchange (PSE) board before it can finally have its IPO.

The real estate developer is targeting to debut on the local bourse by mid-May.

“We share this very important milestone with our valued customers, employees and industry partners. This is a sign of CLI’s commitment to strong corporate governance and to creating greater stakeholder value for the long-term,” said Franco Soberano, CLI chief operating officer.

The float will be up to 33.84 percent of the company’s total outstanding shares after the IPO, with a market capitalization of up to P11.25 billion.

Eighty-three percent of the IPO proceeds will fund the company’s land acquisition and project development costs, while 15 percent and two percent of the proceeds will be used for debt repayment and for general corporate purposes, respectively.

Founded in 2003 by president and CEO Jose Soberano III, CLI is a developer of vertical and horizontal residential projects, mixed-use office developments and hotels to cover a wide segment of the property market.

CLI has 28 projects completed or in various stages of construction, with a total of 11,141 units in Cebu, Cagayan de Oro and Davao.

The company has been named by CBRE Philippines as the leading local developer in Metro Cebu in the residential condominium segment, covering a market share of 11 percent of the total supply. Its share is only next to Ayala Land’s 17 percent and ahead of Filinvest’s eight percent.

Early this year, CLI said it will be investing P12 billion over the next three years. BDO Capital will act as the sole issue manager while joint lead underwriters and joint bookrunners are BDO Capital and BPI Capital.