MANILA, Philippines – DM Wenceslao & Associates Incorporated (DMWAI), a 53-year-old integrated property developer and construction company, plans to conduct a P15.5-billion initial public offering (IPO) to raise funds for its expansion projects.
DMWAI said in a statement on Wednesday, March 7, that it has finally filed the necessary IPO applications with the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).
It was in 2015 when the company decided to defer its listing.
DMWAI said it now plans to offer up to 679.2 million shares, or about 20% of the company's total issued shares.
The company said the proceeds would be used mainly to further expand its real estate footprint through a mix of commercial and residential projects at the Aseana City development in Parañaque City.
The planned offering remains subject to regulatory approvals and market conditions.
DMWAI is the developer and primary owner of Aseana City, a mixed-use business district in the Manila Bay area.
A 2017 study from Colliers International showed that the value of reclaimed land in the Manila Bay area now ranges from P150,000 to P250,000 per square meter (net of value-added tax), growing by about 24% yearly over the past decade.
DMWAI is among the few AAAA construction companies in the Philippines, undertaking large-scale infrastructure and construction projects.
Its financial statements showed that around 50% of its revenues are recurring from the leasing of office and commercial spaces as well as land rentals.
The company saw a net income of P1.56 billion in 2017.
It has mandated BPI Capital and Maybank as the joint global coordinators and bookrunners for the IPO. – Chrisee Dela Paz / Rappler.com