DM Wenceslao & Associates Inc. is looking at reviving the plan to go public this year as part of raising funds to develop the 60-hectare Bay City project, a company official said.
In an interview on Wednesday, D.M. Wenceslao Chief Executive Officer Delfin Wenceslao told reporters the company will wait for a month before making a final decision on an initial public offering (IPO).
“We’re updating most of the information that we would need and we’ll go from there. So maybe in about a month’s time we’ll decide. There’s no urgency, but if the market still becomes consistent and stable it will likely be in our favor,” Wenceslao said.
The target is to raise P12 billion from the IPO. The money from the share sale will fund the development of Aseana City.
“To be honest, all of it will be used for ASEANA, because we’re not just building the roads but even the park…” Wenceslao noted.
The firm expects to spend around P2.5 billion this year for the development of the 60-hectare Aseana City.
In November, the company shelved its IPO and cited the close proximity of the share sale to the holidays in December.
It needs to go through all the IPO application process since the previous filing is no longer valid.
“Our approval lapsed already. It lapsed in early May, so we have to re-update all the info we gave to the PSE,” Wenceslao said.
The firm is now in touch with its underwriters.
“We’re discussing with our underwriters, lawyers… how much information needs to be updated because basically the financials have lapsed, appraisals have lapsed too,” Wenceslao said.
“Assuming everything is okay marketwise, hopefully we get it done this year,” Wenceslao said.
He said the firm is also eyeing other sources of funds.
“We’re also obviously exploring other alternatives, other plans, local banks. All local banks right now are flush with cash. There’s a lot of private equity funds that have shown interest in the company,” Wenceslao added.