DM Wenceslao pegs IPO price at P12/share

D.M. Wenceslao & Associates Inc. (DMWAI), the integrated and construction company owned by the Wenceslao family, has priced its initial public offering at P12 per share to raise P8.15 billion.

The final offer price is significantly lower than the originally planned P22.90 per share offering.

It would be the first company to brave the market this year after Del Monte Philippines decided to defer a planned listing this month.

Reggie Cariaso, managing director at BPI Capital, which is a joint global coordinator and bookrunner for the transaction, said the company decided to push through with the listing because, “we have good quality demand.”

“In my opinion it’s very good value for investors and the market needed some incentive,” he added.

DMWAI plans to list on June 29 with the retail offer period slated to run from June 18 to 22.

In 2015, the company was supposed to go public but decided to shelve its P11 billion IPO.

Proceeds would be used for expansion.

“We intend to use a majority of our net proceeds from the firm offer to fund the development of our pipeline projects, obtain land assets through potential share acquisitions or otherwise, develop infrastructure within Aseana City and for other general corporate purposes,” DMWAI said.

The company has so far completed over 100 construction and infrastructure projects throughout the country and has successfully reclaimed the land hosting its 107-hectare Aseana City, Solaire, Resorts World’s West Side City and City of Dreams entertainment projects.

At present, D.M. Wenceslao has several construction projects in Aseana City, including Ayala Land Inc.’s mall, which will rise next to Solaire and City of Dreams Manila.

It also helped the government reclaim 2.04 million square meters in the Manila Bay area, which is now the country’s fastest-growing commercial business district.

The company owns some 568,000 square meters for its flagship project at the Aseana City. Of this, about 292,000 sqm remains available for development. The company also has 208,000 sqm of landbank located in various other locations in the Philippines.

It also has at least three residential and six commercial developments under way in Aseana. All will be completed in five years.