DM Wenceslao readies P15.5-B IPO

Construction and infrastructure group DM Wenceslao and Associates Inc. aims to pursue a P15.5-billion initial public offering (IPO) this first semester, reviving a capital-raising initiative hatched three years ago.

DMWAI filed on Tuesday a new prospectus at the Securities and Exchange Commission for the offering of up to 679.2 million shares, or about 20 percent of the company’s total issued shares to the public.

Reginald Cariaso, managing director at BPI Capital which is coglobal coordinator and bookrunner for the IPO together with Maybank, said the plan was to launch the offering within the first half of 2018. The offering is subject to regulatory approvals.

The maximum price per share is P22.90 each, based on the prospectus. At least 70 percent of shares will be offered to offshore investors. Subject to regulatory approval, controlling shareholder Wendel Holdings Co. has granted Maybank, in its role as stabilizing agent, to buy up to 101.87 million additional shares at the offer price.

Asked why the group is reviving the IPO at this time, Cariaso said in a text message on Wednesday: “The Manila Bay area, where Aseana City is strategically located, has progressed significantly since 2015 in terms of infrastructure connectivity, property development and land values. It’s more apparent now for investors and the market to appreciate the strategic value and future prospects of Aseana City.”

Proceeds from the offering will be used mainly to further expand DM Wenceslao’s real estate development footprint through a mix of commercial and residential projects in its flagship Aseana City, a mixed-use business district in the Manila Bay area.

Based on the company’s financial statement, some 50 percent of its revenue is derived from recurring sources, or leasing of office and commercial space and land rentals. Since shelving its 2015 IPO plan, it has doubled its net income from P871 million in 2015 to P1.56 billion in 2017.