Share price of construction and property company DM Wenceslao & Associates Inc. fell 14.5 percent to P10.26 on its trading debut despite the market’s 1.8-percent rise.
DM Wecenslao chief executive Delfin Angelo Wenceslao said, however, that he remained confident about the company’s growth prospects, following its maiden share offering that enabled the company to raise P8.1 billion in proceeds.
“Despite a volatile market environment over the past months, we are extremely satisfied to successfully complete our offering. With our more than 50-year execution record in real estate development and construction, the proceeds raised from our IPO will enable us to expand our real estate portfolio through a mix of commercial and residential projects in Aseana City. These pipeline projects will continue to increase our recurring revenue streams and sustain our long term growth,” Wenceslao said.
DM Wenceslao currently has nine projects in the pipeline, offering 400,000 square meters of space, the bulk of which are geared towards recurring income projects.
Wenceslao said he expected recurring business to account for 50 percent to 60 percent of income in the coming years, with residential and land sales accounting for the rest.
Projects in the pipeline include DMWAI’s first residential development, Pixel Residences, which is set to be completed by October 2019.
The offering was co-led by BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners as joint bookrunners and underwriters.
Maybank Kim Eng regional head for Rajiv Vijendran said the offering was strongly supported by institutional and corporate investors and international investors.
DM Wenceslao reported a net income of P1.56 billion in 2017, up 30 percent from 2016. It posted a net profit margin of 52 percent.
Recurring income from leasing of land, office and commercial space accounted for 50 percent of revenues.
DM Wenceslao owns 57 hectares of land in Metro Manila, most of which are in the 110-hectare Aseana City, one of the country’s largest and fastest-growing mixed-use business districts.
Aseana City, its flagship project, sits between Entertainment City and the Mall of Asia in the Manila Bay area.