DM Wenceslao to launch IPO next month

MANILA, Philippines — D.M. Wenceslao & Associates Inc. (DMWAI), the integrated and construction company owned by the Wenceslao family, will  brave the Philippine stock market next month with a P15.5 billion initial public offering now approved by regulators.

The quadruple A construction company has received the green light from the Philippine Stock Exchange (PSE) to embark on its IPO, which is targeted on June 29.

The offer, which will run from June 18 to 22, is comprised of 679.2 million common shares at P22.90 per piece to raise P15.5 billion in proceeds.

The company set aside an over allotment option for 101.876 million shares that could increase the total proceeds to P17.88 billion, according to the offer term sheet filed with the PSE. 

Furthermore, D.M. Wenceslao plans to sell at least 70 percent or 475.27 million shares to foreign investors and 30 percent equivalent to 203.9 million shares to local investors. 

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,” it said in the offer sheet.  

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, the Solaire, Resorts World’s West Side City and City of Dreams entertainment projects.

At present, D.M. Wenceslao also 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 has 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

In all, 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 country.

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

Based on the company’s financial statements, around 50 percent of its revenues are recurring from the lease of office and commercial space and land rentals.  

The company had planned as early as 2015 to list in the market, but decided to defer it because of prevailing market conditions. 

In 2017, it has managed to double its net income to P1.56 billion from P871 million in 2015, with net income ratio of 52 percent,based on the company’s filings.