Cebu Landmasters FOO approved by the PSE

Cebu Landmasters [CLI 2.83, up 0.3%] [link] had its follow-on offering of preferred shares approved by the PSE. CLI will raise up to P5 billion through the sale of two series of preferred shares which will be listed under the ticker symbols CLIA1 and CLIA2. The dates provided by the PSE showed that the prefs would be priced today (meaning that CLI would apply the dividend rates to each series; both will sell for P1000/share). The offer period will run from March 19 through April 2, with a listing tentatively scheduled for April 12. The transaction will be jointly managed and underwritten by BPI Capital [BPI 120.00, up 1.6%] and China Bank Capital [CHIB 36.00, up 2.7%].

MB bottom-line: I’m very interested to see the dividend rates that CLI will pay. It’s a somewhat unique time in the pricing of fixed-income products like preferred shares. Interest rates are high and “stuck”, but equity markets are starting to ramp up in anticipation of feeling the warm sunlight of a central bank pivot. Just recently we’ve seen several indicators lean toward a delay in the implementation of that pivot (US inflation up, job market hot, etc), so CLI’s pricing of these dividend rates will need to accommodate both the actual existing high rates but also the sentiment/perception of how rates will evolve in the near- and medium-term. 

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