PROPERTY and construction firm DM Wenceslao and Associates, Inc. is planning to go public and is preparing for a P15.5- billion initial public offering (IPO) this year as it pursues an expansion program.
The company said Wednesday that it had filed a preliminary prospectus with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE) to offer as much as 679.2 million shares—priced at P22.90 apiece—with an overallotment option of up to 101.87 million shares.
The planned offering is equivalent to 20 percent of the company’s total outstanding shares. This is the company’s second attempt to go public after deferring a planned listing in 2015.
The company tapped BPI Capital and Investments Corp. and Maybank Kim Eng Securities Pte. Ltd. as the joint global coordinators and bookrunners for the IPO.
“Our company intends to use the net proceeds from the offer to fund the development of our pipeline projects, obtain land projects through potential share acquisitions, develop infrastructure within Aseana City and for other general corporate purposes,” the company said in its prospectus.
DM Wenceslao is banking on the robust growth of the property sector in t he bay area.
According to global real estate services firm Colliers International-Philippines, the bay area is now becoming more popular as it is a feasible option for mixed-use projects as shown by Aseana City.
“Data from Colliers showed that the value of reclaimed land in the Manila Bay area now ranges from P150,000 to P250,000 per square meter, growing by an average of 24 percent annually over the past 10 years,” the company said.
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. It is one of the few AAAA construction companies in the Philippines capable of undertaking large-scale infrastructure and construction projects.
Based on the company’s financial statements, around 50 percent of its revenues are recurring from the leasing of office and commercial space and land rentals. Last year, the company recorded net income of P1.56 billion.