DM Wenceslao IPO to fund acquisitions, projects up to 2020


DM Wenceslao and Associates Inc. is seeing its projects and land acquisitions continuing up to 2020, funded by the proceeds of from a planned initial public offering (IPO).

The company is preparing to raise up to P18.883 billion by offering 429.17 million shares at P44 apiece, which the Securities and Exchange Commission (SEC) approved late last week.

The P14.477 billion in net proceeds after expenses and taxes will funds projects and acquisitions until 2020.

Some 46.4 percent or P8.108 billion will finance the development of 10 real estate projects in the pipeline.

Up to 25.6 percent or P4.476 billion will be used as working capital, including the purchase, lease, and repair of construction equipment. The company also intends to beef up its reserves or provision for potential projects and business opportunities.

It said 23.7 percent of the net IPO proceeds or P4.146 billion will be used to buy land.

The balance of P746.3 million or 4.3 percent will go to the development of Aseana City, including construction of public amenities and underground utilities in accordance with Aseana City’s masterplan.

DM Wenceslao said that 70 percent of the IPO shares will be offered overseas with CLSA Limited, Deutsche Bank AG (Hong Kong) and Maybank Kim Eng Securities Pte. Ltd. as international lead underwriters.

Thirty percent of the offer shares will be sold in the domestic market, to be underwritten by BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners Inc.


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