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D.M. Wenceslao revives initial public offering plan to raise P17.9b in May

Property developer D.M. Wenceslao & Associates Inc. revived its initial public offering plan to raise P17.88 billion in May.

The company said in a filing with the Securities and Exchange Commission it would offer 679.2 million common shares at P22.90 apiece.  It has an over-allotment option to sell another 101.876 million shares that could push total proceeds to P17.88 billion.

Delfin Wenceslao, chief executive of D.M. Wenceslao, said the timing of the IPO in May would be favorable given the current macro environment and the company’s growth performance.

“I think there is tremendous opportunity for the company in both property and construction sectors because of the massive infrastructure spending and huge commercial, and residential interest in the Bay Area based on what we’ve experienced in our own projects in Aseana City,” Wenceslao said.

Net proceeds from the IPO will be used to expand the company’s real estate development footprint through a mix of commercial and residential projects within the 204-hectare Aseana City.

Offer period was tentatively set on May 21 to May 25 while listing date would be on June 1.

The company designated BPI Capital and Maybank as the joint global coordinators and bookrunners for the IPO.

D.M. Wenceslao first filed an IPO application with the SEC in 2015, when the company planned to raise up to P21.7 billion from the sale of 429 million shares at P44 apiece.  The developer decided to defer its maiden share offering because of volatile market conditions.

D.M. Wenceslao reported a net income of P1.56 billion in 2017, up 30 percent from P1.2 billion in 2016 as revenues rose to P3 billion from P2.1 billion.

D.M. Wenceslao is an integrated property developer with an established track record and market-leading capabilities in land reclamation, construction and real estate development.

It completed seven investment properties as of end-2017, including six projects in Aseana City, with a total land area of 42,464 square meters and total leasable floor area of 59,027 sqm. 

Aseana City is being positioned to become the next major mixed-use or “live-work-play” CBD in Metro Manila, anchored by tourism, recreational developments and retail malls. 

D.M. Wenceslao is the second company to file an IPO application this year, after Del Monte Philippines Inc. which is looking to raise P1.67 billion in an IPO in April.

Topics: D.M. Wenceslao , Securities and Exchange Commission , real estate development
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