The Philippine Stock Exchange has approved a plan of 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 in 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, the company 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 yearly 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 is 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 the offering.
DM Wenceslao has a 50-year track record in land reclamation and infrastructure construction in the Philippines. It assisted the government in reclaiming Aseana City and thereafter obtained title to a 56.8-hectare portion of the reclaimed land.
DM Wenceslao has so far completed about 100 land reclamation and construction projects and developed three commercial buildings in Aseana City.
In 2017, the company posted a profit of P1.56 billion, up from P1.2 billion in 2016.
Incorporated in 1965, DM Wenceslao is 78.6-percent owned by Wendel Holdings while 21.3 percent is held by company chair, president and director Delfin J. Wenceslao Jr.