SEC approves planned IPO of DM Wenceslao

SEC approves planned IPO of DM Wenceslao
The construction firm will offer 679.2 million common shares at an offer price of P22.90 per share

MANILA, Philippines – The Securities and Exchange Commission (SEC) on Tuesday, May 15, approved the planned P15.5-billion initial public offering (IPO) of DM Wenceslao & Associates Incorporated (DMWAI).

Documents filed with the SEC showed that DM Wenceslao will offer 679.2 million common shares at an offer price of P22.90 per share.

An overallotment of 101.876 million additional shares has also been set aside, which could push total proceeds to P17.88 billion.

Net proceeds from the IPO will be used to expand DM Wenceslao’s real estate development footprint through a combination of commercial and residential projects.

The planned IPO has been tentatively set from June 18 to June 22. The company plans to list on the local bourse on June 29.

DM Wenceslao has hired BPI Capital and Maybank as its joint global coordinators and bookrunners for the planned market debut.

This is the second time DM Wenceslao has planned to go public.

It was in 2015 when it first filed an IPO application with the SEC.

The construction firm was then looking to raise as much as P21.7 billion from the sale of about 429 million shares at an offer price of P44 apiece.

But due to volatile market conditions, the construction firm decided to delay its IPO.

DM Wenceslao saw its net income increase by 30% to P1.2 billion in 2017, while its revenues also went up to P3 billion in the same year.

The firm has 7 investment properties, bulk of which are located at Aseana City in Parañaque City.

DM Wenceslao intends to earmark P10.9 billion in capital spending budget until 2020 to fund the construction of 9 more projects. – Rappler.com