Corporate regulators have approved property and construction firm DM Wenceslao and Associates, Inc.’s plan to raise as much as P15.5 billion from an initial public offering (IPO).
The Securities and Exchange Commission on Tuesday authorized the firm to issue as much as 679.2 million shares priced at P22.90 apiece with an overallotment option of up to 101.87 million.
DM Wenceslao’s registration statement was originally submitted to the SEC en banc last Thursday but a ruling was deferred pending a tax assessment impact clarification.
The consruction firm filed its IPO application in March, its second attempt to go public after deferring a planned listing in 2015.
The offering is equivalent to 20 percent of the company’s total outstanding shares, a requirement under the Securities Regulation Code.
“Our company intends to use the net proceeds from the offer to fund the development of our pipeline projects, obtain land projects through potential share acquisitions, develop infrastructure within Aseana City and for other general corporate purposes,” the company said in its application.
BPI Capital and Investments Corp. and Maybank Kim Eng Securities Pte. Ltd. have been appointed as joint global coordinators and bookrunners for the IPO.
DM Wenceslao is the master developer and primary owner of Aseana City, a real estate development and a growing business district in the Manila Bay area.
The company recorded a net income pf P1.56 billion last year, with half of revenues coming from the leasing of office and commercial space and land rentals.