PSE Okays Construction Firm’s IPO

- Jun 08, 2018-

The country’s first initial public offering (IPO) for the year has been set for next month with construction and real estate firm DM Wenceslao and Associates, Inc. having secured the requisite regulatory approvals.

The Securities and Exchange Commission gave its approval last May 15 and the Philippine Stock Exchange (PSE) followed suit on May 23 based on a notice posted on the PSE website.

According to the attached offer sheet, DM Wenceslao will be setting the final offer price — currently at up to P22.90 per share — for its P15.5-billion IPO on June 8 prior to the start of a June 18-22 offer period and a June 29 listing.

The company plans to issue as much as 679.2 million shares with an overallotment option of up to 101.87 million, equivalent to 20 percent of its total outstanding shares in keeping with regulatory requirements.

DM Wenceslao said it would use most of the proceeds to fund the development of pipeline projects, expand its land bank, develop infrastructure within its flaghip Aseana project in Pasay City and for other general corporate purposes.

The company previously planned to go public in 2015 but shelved the offering given volatile market conditions. It refilled its IPO application in March.

BPI Capital and Investments Corp. and Maybank Kim Eng Securities Pte. Ltd. have been named as joint global coordinators and bookrunners for the transaction.

DM Wenceslao is the master developer and primary owner of Aseana City, a real estate development and a growing business district in the Manila Bay area.

The company recorded a net income of P1.56 billion last year, with half of revenues coming from the leasing of office and commercial space and land rentals.

The builder has nine property projects in the pipeline, six of which are for commercial purposes and the rest classified as residential. All projects are targeted for completion in 2023.

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