D.M. WENCESLAO & Associates, Inc. looks to take the company public by June, after recently filing for a P15.5-billion initial public offering with the Securities and Exchange Commission (SEC).
In a prospectus posted on the company’s Web site, DM Wenceslao said it plans to offer up to 679.172 million shares to the public, with an over-allotment option of up to 101.876 million shares, priced at P22.90 each. This comprises around 20% of the company’s total issued shares.
The company looks to offer the shares to the public from May 21 to 25, with listing at the main board of the Philippine Stock Exchange (PSE) under the ticker “DMW” set for June 1. The final dates will depend on the approval of the SEC and the PSE.
DM Wenceslao expects to net P14.45 billion from the offer, which will be used for expanding Aseana City, the company’s 204-hectare estate in Parañaque City. Around half of the net proceeds will be allotted for the acquisition of land assets at P7.46 billion.
The firm also has nine planned real estate developments in its pipeline, consisting of three residential projects and six commercial projects valued at around P5.31 billion. The projects are expected to be completed within the next five years.
Another P500 million will go to the development of infrastructure inside Aseana City, such as public amenities and underground utilities as specified in the estate’s master plan. The remaining P1.26 billion will be used for general corporate purposes.
The company has engaged BPI Capital Corp. and Maybank Kim Eng Securities, Pte. Ltd. as the joint global coordinators and book runners of the offer, while the latter will serve as the international lead manager and underwriter.
DM Wenceslao had initially filed for a P12.3-billion IPO at the SEC in 2015, but did not push through due to unfavorable market conditions.
Asked on why the company decided to pursue the IPO at this time, BPI Capital Managing Director Reginaldo Anthony B. Cariaso said the prospects of DM Wenceslao’s business is more apparent at this time.
“The Manila Bay Area, in which Aseana City is strategically located, has progressed significantly since 2015 in terms of infrastructure connectivity, property development, and land values. It’s more apparent now for investors and the market to appreciate the strategic value and future prospects of Aseana City,” Mr. Cariaso said in a text message.
For 2017, the company reported a net income of P1.56 billion, following revenues of P3.01 billion. Over the past three years, DM Wenceslao said its compounded annual growth rate was at 34%. The firm had seven completed properties by the end of last year, with a total leasable floor area of around 59,027.9 square meters.
DM Wenceslao is banking on the growth of mixed-used business districts in the Manila Bay Area, citing a report from real estate consulting firm Colliers International.
“The development of mixed-use communities across Metro Manila is becoming more popular as these projects integrate the live-work-play-shop lifestyle. The reclaimed land in the Manila Bay area is a feasible option for mixed-use projects as shown by the growing popularity of D.M. Wenceslao’s Aseana City,” the company quoted Colliers in a statement. — Arra B. Francia