D.M. Wenceslao & Associates plans IPO

March 8, 2018 - 12:43 AM
Aseana One, the first building built on Aseana City. PHOTO FROM ASEANA HOLDINGS WEBSITE

MANILA – D.M. Wenceslao & Associates, Incorporated (DMWAI), the 53-year-old integrated property developer and construction company of the Wenceslao family, has filed with the Securities and Exchange Commission and the Philippine Stock Exchange applications in connection with its planned initial public offering (IPO) to raise as much as P15.5 billion.

DMWAI has filed before the Philippine Securities and Exchange Commission its plan to offer up to 679.2 million shares, or about 20% of the company’s total issued shares. The company’s filing states that proceeds will be mainly used to further expand its real estate development footprint through a mix of commercial and residential projects in Aseana City. The planned offering remains subject to the requisite regulatory approvals and market conditions.

DMWAI is the master developer and primary owner of Aseana City, one of the largest and fastest growing mixed-use business districts in the Manila Bay Area. In a 2017 statement, Colliers International said,“The development of mixed-use communities across Metro Manila is becoming more popular as these projects integrate the live-work-play-shop lifestyle. The reclaimed land in the Manila Bay area is a feasible option for mixed-use projects as shown by the growing popularity of D.M. Wenceslao’s Aseana City.”

Data from Colliers showed that the value of reclaimed land in the Manila Bay area now ranges from ₱150,000 to ₱250,000 per square meter (net of value-added tax), growing by an average of 24% annually over the past 10 years.

In addition to its property development business, DMWAI is also one of a few AAAA construction companies in the Philippines which speaks of its stability and capacity to undertake large scale infrastructure and construction projects.

Based on the company’s financial statements, around 50% of its revenues are recurring from the leasing of office and commercial space and land rentals. While the company decided to defer its listing in 2015, the company has managed to double its net income from ₱871 million in 2015 to ₱1.56 billion in 2017, with net income ratio of 52%,based on the company’sfilings.

The company has mandated BPI Capital and Maybank as the Joint Global Coordinators and Bookrunners for the IPO.