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D.M. Wenceslao to raise 14.45B Philippine pesos from planned IPO

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D.M. Wenceslao to raise 14.45B Philippine pesos from planned IPO

D.M. Wenceslao and Associates Inc. is targeting approximately 14.45 billion Philippine pesos in net proceeds from an IPO of up to 679,172,800 common shares, representing 20% of its total issued shares, at a maximum of 22.90 pesos apiece.

Aside from the primary offering of 1.00 peso par value shares, the Filipino construction and property development company said selling shareholder Wendel Holdings Co. Inc. will grant stabilizing agent Maybank ATR Kim Eng Capital Partners Inc. the right to purchase up to 101,876,000 additional common shares under a 30-day overallotment option. Wendel stands to pocket about 2.24 billion pesos if the option is exercised in full.

The institutional component of the primary offering amounts to 70% of the shares, to be offered outside the Philippines and the U.S. in offshore transactions, as well as to domestic qualified institutional buyers and other domestic institutional investors in the Philippines. Meanwhile, the retail offer comprises 30% of the shares, which will be sold to all of the trading participants of the bourse and local small investors in the Philippines.

D.M. Wenceslao filed the IPO application with the country's Securities and Exchange Commission and has yet to receive approval, according to its prospectus. The developer also lodged an application to list the offered shares, together with the existing shares, on the Main Board of The Philippine Stock Exchange Inc., where they will trade under the DMW symbol. Following the issuance, 3,395,864,100 shares will be outstanding, said the company.

Net proceeds from the IPO will be used to develop D.M. Wenceslao's pipeline projects, purchase land assets via potential share acquisitions, develop infrastructure within Aseana City — in the Manila Bay Area — and for other general corporate purposes. The developer plans to disburse proceeds accordingly by the end of 2022.

According to an indicative timetable, D. M. Wenceslao expects to price the IPO shares May 11, with the retail offer to run May 21-25, and the institutional offer to settle June 1. If all goes according to plan, the company will debut on the local bourse June 1.

BPI Capital Corp. and Maybank Kim Eng Securities Pte. Ltd. are appointed joint global coordinators and book runners for the offering. BPI will also serve as domestic lead manager and underwriter, alongside Maybank ATR Kim Eng Capital Partners Inc.

Maybank Kim will also act as international lead manager and underwriter for the offering.

As of March 5, US$1 was equivalent to 51.88 Philippine pesos.