PSE oks DM Wenceslao’s P15.5B IPO

Aseana Square is a two-storey food hub and commercial complex that serves the 240,000 vehicles that pass through Aseana City.

The Philippine Stock Exchange has approved a plan by integrated property developer and construction group D.M. Wenceslao and Associates Inc. to launch an initial public offering worth as much as P15.5 billion this June.

DM Wenceslao is authorized to sell 679.17 million in common shares at a price per share of up to P22.90. As part of the offering, controlling shareholder Wendel Holdings Co. Inc. has the option to sell up to 101.88 million shares.

The equity deal will be priced on June 7. At the maximum price per share, it will have a market capitalization of P77.8 billion.

This offering – which will run from June 18 to 22 – will bring to public hands about 20 percent of DM Wenceslao’s outstanding shares.

Targeted listing on the PSE’s main bourse under the ticker “DMW” is June 29.

At least 70 percent of the offering is intended to be sold outside the Philippines.

On dividend policy, the company intends to declare annual dividends equivalent to at least 30 percent of the previous year’s net income subject to availability of unrestricted earnings, except when embarking on justified expansion projects, restricted by loan covenants or when there’s a need to set aside reserves for probable contingencies.

BPI Capital Corp. and Maybank Kim Eng are the joint global coordinators, bookrunners and underwriters for this offering.

DM Wenceslao has a 50-year track record in land reclamation and infrastructure construction in the Philippines. It assisted the government to reclaim Aseana City and thereafter obtained title to a 56.8-hectare portion of the reclaimed land. These land reserves beside the Pagcor Entertainment City, now valued at around P128.9 billion, are available for development.

To date, DM Wenceslao has completed more than 100 land reclamation and construction projects and developed three commercial buildings in Aseana City.

In 2017, the company earned P1.56 billion in net profit, rising from P1.2 billion in the previous year.

Incorporated in 1965, DM Wenceslao is 78.6-percent owned by Wendel Holdings while 21.3 percent is held by Delfin J. Wenceslao Jr., the company’s chair, president and director.