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Developer to go ahead with P21.7-B IPO

Posted on November 22, 2015 09:13:00 PM [ Businessworldonline]
By Krista A. M. Montealegre, Senior Reporter

INTEGRATED property developer D.M. Wenceslao and Associates, Inc. intends to brave the equity market with the country’s largest initial public offering (IPO) this year even after diversifying construction firm Datem, Inc. shelved its stock market debut.


Property developer D.M. Wenceslao and Associates’ Aseana City, an emerging business district on reclaimed land along Manila Bay, is shown in this undated handout photo.
Datem notified the Philippine Stock Exchange (PSE) on Friday that it postponed its P4.66-billion first-time share sale to an unspecified later date, with volatile market conditions seen as a dampener to the company’s equity offer.

Asked if the firm intends to push through with the planned P21.7-billion IPO this year in light of Datem’s deferral, D.M. Wenceslao Chief Executive Officer President Delfin C. Wenceslao said in a mobile phone message: “Yes.”

D.M. Wenceslao has recently tweaked the timetable of its IPO, pushing back the offer period to Dec. 9-15 after setting the final offer price on Dec. 4, according to its prospectus dated Nov. 16.

Trading of its shares on the Main Board of the PSE is scheduled to commence on Dec. 22.

The share sale will happen just before the Federal Reserve holds its policy meeting on Dec. 15-16 where it is widely expected to raise interest rates for the first time this year -- a cause of volatility across global financial markets.

“The goal is always to finish strong as we close the year amid all uncertainties,” PSE Chief Operating Officer Roel A. Refran said in a phone interview.

“There’s so much liquidity in our system that’s ready to be invested when there are investment opportunities. I’m not so much disheartened by what’s happening in the market,” Mr. Refran said.

Year-to-date, the bellwether PSE index is down 4.12% after cumulative gains reached a high of 12.4% in April.

D.M. Wenceslao plans to sell up to 429.17 million primary common shares with a par value of P1 per share at a maximum price of P44 apiece, generating P18.88 billion in gross proceeds.

Key shareholder Wendel Holdings Co., Inc. has an option to upsize the offering by P2.83 billion with the sale of up to 64.375 million common shares in the company.

The share sale will bankroll the construction of the company’s pipeline projects, purchase of land assets through share acquisitions, development of infrastructure within Aseana City and other general corporate purposes.

D.M. Wenceslao’s key asset is 583,801.1 square meters of land in Aseana City -- located next to Entertainment City and the Mall of Asia complex, and positioned as the next major central business district in Metro Manila.

Several IPO candidates are still awaiting regulatory approvals. They are Pointwest Technologies Corp. (P2.09 billion), TVI Resource Development Phils., Inc. (P1.51 billion), Philippine Primark Properties, Inc. (P1.2 billion), Gweilo Corp. (P95 million); Philstocks Financial, Inc. (P190 million); and Green Power Panay Philippines, Inc. (P290 million).

So far, only Crown Asia Chemicals Corp. (P222.78 million) and SBS Philippines Corp. (P1.16 billion) have joined the bourse this year.

Metro Retail Stores Group, Inc. (P3.97 billion) is making its stock market debut on Tuesday followed by Italpinas Development Corp. (P242 million) on Dec. 7.

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