Real estate developer D.M. Wenceslao & Associates Inc. (DMWAI) has set the final offer price of its initial public offering (IPO) at Php12 per share, according to a notice submitted to the Philippine Stock Exchange (PSE) last June 8.
The offer price is much lower than the maximum of Php22.90 per share set by DMWAI prior to getting SEC and PSE approvals last May. Should all 679.1 million offer shares and the 101.9 million optional shares for over-allotment be sold, DMWAI stands to earn as much as Php9.4 billion from its IPO.
The offer period for the shares is scheduled for June 18 to 22, while listing on the PSE’s main board is set on June 29. DMWAI’s shares will be trading under the ticker symbol DMW.
DMWAI is best known as the developer of Aseana City, a 107-hectare mixed-use project in the Bay Area. Its current portfolio consists of seven completed properties, most of which are within Aseana City, as well as nine residential and commercial pipeline projects.
Proceeds from the IPO will primarily be used to fund the construction and development of these pipeline projects, which are expected to be completed in the next five years. DMWAI will also use the funds raised from the IPO to purchase new land assets and develop Aseana City’s infrastructure.
BPI Capital Corp. and Maybank ATR Kim Eng serve as the IPO’s joint lead managers, underwriters, bookrunners and global coordinators.
DMWAI’s listing stands to be the first for 2018, as well as the first after an over 300-day period without any IPOs. Food-and-beverage manufacturer Del Monte Philippines Inc., which was scheduled to list days before DMWAI, postponed its IPO due to unfavorable market conditions.
Investing in IPOs entails considerable risks as it could lead to some losses if the share price falls below the offering price. Prospective investors are advised to read DMWAI's prospectus and seek the advice of investment professionals.
Lorenzo Kyle Subido is a staff writer of Entrepreneur PH