DM Wenceslao & Associates Inc. pegged the final price for its planned initial public offering at P12 per share that will enable it to raise P8.15 billion in proceeds.
The final price is 47.6 percent lower than the initial indicative price of P22.90 when DMWAI filed its IPO prospectus with the corporate regulators in March.
DMWAI is expected to raise P8.15 billion from the sale of 679.2 million common shares at P12 per share. The total proceeds could go up to P9.37 billion if the sale of 101.87 million in over-allotment shares is exercised.
BPI Capital Corp president Reginaldo Cariaso said in a mobile message DMWAI was well covered at P12 per share
“Institutional tranche was well covered by high quality domestic and international investors at that price level,” Cariaso said.
At least 70 percent of the shares, or 475.27 million, will be sold to foreign investors and 30 percent equivalent to 203.9 million shares will be offered to local investors.
The company plans to use the net proceeds from the IPO to expand its real estate development footprint through a mix of commercial and residential projects within the 204-hectare Aseana City.
The company tentatively set the offering period on June 18 to 22 and the listing date on June 29.
DWMAI is pushing through with the IPO even as Del Monte Philippines Inc. opted to defer a P13.5-billion offering pending an improvement in market conditions.
Aseana City is a 107.5-hectare master planned reclamation being positioned to become the next major mixed-use or “live-work-play” CBD in Metro Manila, anchored by tourism, recreational developments, and retail mall.
The company at the end of 2017 had seven completed investment properties, including six in Aseana City, with a total land area of 42,464 square meters and a leasable floor area of approximately 59,027 sq. m.
DMWAI over the next five years has lined up nine new projects that will expand its real estate footprint and broaden its sources of recurring income. Three of these are residential and six are commercial developments.
