DM Wenceslao trims IPO price

MANILA, Philippines – D.M. Wenceslao and Associates Inc. (DMWAI) has trimmed its offer price to P25 per share from the earlier announced price of P44 each.

The downward adjustment in the offer price comes amid the prevailing market volatility.

With the reduced offer price, the company now expects to raise about P12.3 billion from its maiden share sale of 493 million shares, which include an over-allotment option of 64.37 million shares.

The offering will run from Dec. 9 to 15 while the listing of the shares is targeted on Dec. 22.

In its latest term sheet, the  company said at least 70 percent of the offer shares would be sold to foreign investors while the balance of 30 percent would be issued to local investors.

Proceeds would be used to fund the development of the company’s pipeline projects, among which is the 204-hectare Aseana City, which is dubbed as the next major central business district in Metro Manila.

Among the projects slated for construction from 2016 to 2020 include Aseana 3,4, 5,6 and 7 office buildings as well as Pixel Residences, Greenway Residences and Parkside Place.  Also to be developed are Aseana Town Center phase 2 and Aseana Square.

The three residential developments have a total gross saleable floor area of 68,384 square meters and seven commercial and office developments with a total gross leasable floor area of 324,264 sqm.

The company has tapped  BPI Capital Corp. CLSA Limited, Deutsche Bank AG, Hong Kong branch and Maybank Kim Eng Securities Pte. Ltd. as joint global coordinators, bookrunners and international underwriters.

BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners, on the other hand, will serve as the domestic underwriters.

 Three companies have so far listed on the stock exchange. These are Crown Asia, SBS Philippines and the Gaisano family’s Metro Retail Stores Group.

 Green energy developer Italpinas, meanwhile, is set to list on Dec. 7.