D.M. Wenceslao rules out IPO this year

INTEGRATED PROPERTY and construction firm D.M. Wenceslao & Associates, Inc. has ruled out an initial public offering (IPO) this year after tapping bank financing to bankroll the development of an emerging central business district in Metro Manila.

D. M. Wenceslao Chief Executive Officer Delfin Angelo C. Wenceslao said in a mobile phone message on Wednesday the company sees “no urgent requirement” to pursue a stock market debut since it has raised approximately P4 billion through bank borrowings.

“Definitely not this year on IPO plans,” Mr. Wenceslao said.

Prior to closing its doors on an equity offer, Mr. Wenceslao had said in November that it was on a “wait- and- see” stance, as it evaluates how United States President Donald J. Trump’s anti- outsourcing policies could affect the expansion of business process outsourcing ( BPO) sector.

D.M. Wenceslao was to offer a reduced P12.3 billion worth of shares in 2015, but delayed its debut on the market, citing adverse market conditions. It slashed by nearly half the maximum ceiling price to P25 per share from P44 apiece, bringing down the gross proceeds from the original P21.7 billion.

The share sale even attracted HKL ( Digital Building) Ltd., a unit of property investment group Hong Kong Land, as a cornerstone investor, with a commitment to purchase primary shares worth $50 million.

Proceeds from the share sale were to fund the development of the company’s key asset: some 584,000 square meters of land in Aseana City — located next to gaming hub Entertainment City and the Mall of Asia complex.

The Philippine stock market has a long list of IPO candidates, with Wilcon Depot, Inc. kicking off listings next week after launching a P7-billion IPO.

Bermaz Auto Philippines, Inc. may be next in line with a P1.24- billion share sale after securing the approval of the Securities and Exchange Commission (SEC).

Eagle Cement Corp. and Cebu Landmasters, Inc. are seeking regulatory clearance to raise P9.20 billion and P3.8 billion, respectively.

Also pending before the SEC are applications from Pure Energy Holdings Corp., Xeleb Technologies, Inc. and Audiowav Media, Inc., which proposed to raise P1.58 billion, P751.8 million and P2.66 billion, respectively.