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SEC Approves Php17.9-B IPO of Property Developer Behind Bay Area Boom

Aseana City builder D.M. Wenceslao and Associates is pricing shares up to Php22.90 apiece
By Lorenzo Kyle Subido |
SEC Approves Php17.9-B IPO of Property Developer Behind Bay Area Boom

The Securities and Exchange Commission has approved the application of real estate developer D.M. Wenceslao and Associates Inc. (DMWAI) to conduct an initial public offering (IPO).

 

DMWAI is best known as the developer behind Aseana City, a 107-hectare project that the company says “is positioned as the next major mixed-use CBD (central business district) within Metro Manila.” Its current portfolio consists of seven completed properties, most of which are within Aseana City, as well as nine residential and commercial projects in the pipeline.

 

The company is also part of the R-1 Consortium, the government’s private partner in the long-term bay area reclamation project spanning 204 hectares of land within the cities of Pasay and Parañaque. This area contains major property developments such as the Philippine Amusement and Gaming Corporation’s Entertainment City, SM Investments Corp.’s Mall of Asia and DMWAI’s own Aseana City.

 

The rapid rise of development in the Bay Area has not escaped the radar of property experts and investors. In its latest quarterly report of the Metro Manila property market, real estate analyst Colliers International Philippines revealed that it forecasts a majority of new residential supply to come from the Bay Area. It is currently comparable to Ortigas Center in terms of total residential supply, and Colliers forecasts that it will surpass the Makati CBD by 2021.

 

 

Delfin Wenceslao Jr., chairman of DMWAI

 

 

According to the IPO's prospectus, DMWAI will offer over 679.2 million new shares valued at a maximum price of Php22.90 apiece, with an overallotment option of over 101.8 million shares. The final price will be set closer to the listing date. Should all 781 million shares be sold at the maximum price, DMWAI’s IPO will be worth Php17.9 billion.

 

Proceeds from the IPO will primarily be used to fund the development of its pipeline projects, which are slated to be completed in the next five years. As well, DMWAI will also use the fresh capital to purchase new land assets and to develop Aseana City’s infrastructure.

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While no official announcement has been made as to when DMWAI will hold the IPO, its prospectus shows an expected timetable of the offer period happening this June. Interested investors are encouraged to read the IPO prospectus for more details.

 

BPI Capital Corp. and Maybank ATR Kim Eng serve as the offer’s joint lead managers, underwriters, bookrunners and global coordinators.

 

 

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Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

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