Datem, DM Wenceslao, Italpinas IPOs approved

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Three more companies have been given the go-signal to stage initial public offerings (IPOs) before the year ends, allowing the Philippine Stock Exchange (PSE) to top a downwardly-adjusted listing target.

The bourse on Thursday said it had approved the IPO plans of Datem Inc., DM Wenceslao and Associates Inc. and Italpinas Development Corp.

Following the debuts earlier this year of Crown Asia Chemicals Corp. and SBS Philippines Corp., and Metro Retail Stores Group, Inc.’s scheduled listing later this month, the latest approvals mean a total of 6 IPOs for 2015, one better than the bourse’s goal of five.

The PSE had initially targeted 9 to 10 listings for 2015 and the dearth in IPOs—traced to global volatility—had cut into its income as of end-September.


“We are pleased that three more companies are set to be listed on the exchange before the year ends, bringing us to around the P200-billion capital raising level this year,” PSE President and Chief Executive Officer Hans B. Sicat said in a statement.

Datem and D.M. Wenceslao will be listed on the Main Board while Italpinas will debut on the SME Board.

“We believe this series of offerings should be welcome news to investors and the capital market in general. This signals the ability of the Philippine market to offer a wide range of transactions even amidst some financial volatility in other parts of the world. We hope this will encourage more potential issuers to tap the stock market for their funding requirements,” Sicat said.

“We encourage all investors to go through the information statements carefully to help them in their investment decisions.”

The PSE approvals followed go-signals from the Securities and Exchange Commission.

Construction firm Datem, Inc. is seeking to raise P4.65 billion to expand its activities in construction, housing and bulk water. It will offer 329.046 million shares —286.127 million for the base offer and 42.919 million more in case of oversubscription—at a maximum of P14.15 per share.

The offer period will run run from November 24 to December 1 and listing at the PSE Main Board is set for December 8.

BPI Capital Corp. and First Metro Investment Corp. have been appointed joint issue coordinators, lead underwriters and bookrunners.

Construction giant DM Wenceslao, meanwhile, is seeking to raise P18.88 billion to sustain its expansion plans and land acquisitions through 2020. It will be the biggest IPO for this year.

It will offer 429.17 million shares priced P44 each. Prior to the PSE approval, it said the final price would be set on November 20, with a November 24 to December 1 offer period and a December 8 listing.

The firm said 70 percent of the IPO shares would be offered outside of the Philippines, with CLSA Limited, Deutsche Bank AG (Hong Kong) and Maybank Kim Eng Securities Pte. Ltd. as international lead underwriters.

The 30-percent balance will be sold domestically, to be underwritten by BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners, Inc.

Lastly, Primavera Residences developer Italpinas wants to raise P242 million by offering 57.662 million common shares priced at up to P4.20 per.

Expected net proceeds of P220.8 million will go to capex (P120.68 million), land banking and acquisitions (P47 million), retirement of loans (P20 million) and general working capital (P33.12 million).

The offer period will be from November 23 to 27. The company expects to list at the PSE’s Small, Medium and Emerging Board on December 7. The underwriter for the IPO is Unicapital Inc.

Earlier this year, pipes and plastics maker Crown Asia raised P222.78 million from the issuance of 158 million primary common shares, while chemical trader SBS Philippines took in P1.15 billion in fresh funds.

Gaisano-owned Metro Retail, which runs department stores and supermarkets, is hoping to raise P4.037 billion—adjusted from P6.17 billion after it cut the offer price—via the sale of 1.012 billion shares. The offer period ends today, with a listing on the Main Board set for Nov. 24.

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