MANILA, Philippines - The Securities and Exchange Commission has approved a plan by property and infrastructure developer DM Wenceslao and Associates Inc. to raise up to P21.7 billion from an initial public offering of shares.
Based on the registration statement filed with securities regulators, DM Wenceslao will sell up to 493.54 million shares, including an overallotment option of 64.37 million shares at a maximum price of P44 each.
The offering would be the largest IPO so far this year.
At least 70 percent of the offering, including the optional shares, are proposed to be sold to overseas markets, while 128.75 million shares are proposed to be offered to PSE trading participants and retail investors.
BPI Capital Corp, CLSA Ltd, Deutsche Bank AG (Hong Kong branch) and Maybank Kim Eng Securities Pte Ltd are the joint global coordinators and bookrunners for the issue.
Proceeds from the IPO will be used to fund the development of the company’s pipeline projects as well as for land acquisitions.
DM Wenceslao will also develop infrastructure in its 204-hectare Aseana City project located near Entertainment City, the Philippines’ version of the Las Vegas gaming strip.
The company has adopted a dividend policy pursuant to which shareholders may be entitled to receive, subject to the availability of unrestricted retained earnings, dividends equivalent to at least 30 percent of the prior year’s net income after tax except when justified by definite corporate expansion projects or programs approved by the board.