DM Wenceslao & Associates Inc. has reduced the maximum price for its planned initial public offering to P25 apiece, down 43 percent from the initial price of P44 amid volatile market conditions.
DM Wenceslao could potentially raise as much as P12.3 billion in proceeds at an IPO price of P25 per share from the original target of P21.7 billion.
DM Wenceslao also obtained a cornerstone investor—HKL (Digital Building) Ltd.—for the maiden share sale.
DM Wenceslao did not say how many shares will HKL acquire. The construction and property company earlier said the cornerstone shares would represent not more than 25 percent of the total offer shares, excluding the optional shares.
DM Wenceslao, according to the latest offer term sheet submitted to the Philippine Stock Exchange, is selling up to 429 million in primary common shares. Selling shareholder Wendel Holdings Inc. granted the underwriters an option to sell another 64.375 million in secondary shares to cover for over-allotment.
The company plans to sell at least 70 percent of the offer shares to foreign investors and the balance to local buyers and trading participants in the stock exchange.
DM Wenceslao said it planned to use the proceeds from the IPO primarily to fund the development of pipeline projects, purchase land assets through share acquisition and develop infrastructure within the 204-hectare mixed-use development, Aseana City.
DM Wenceslao said it had 10 projects in the pipeline that would be completed over the next five years to boost the company revenues.
The company earlier tapped BPI Capital Corp., CLSA Limited, Duetsche Bank AG and Maybank ATR Kim Eng Securities Pte. as joint global coordinators and book runners for the IPO.
The offering period is set from Dec. 9 to Dec. 15, while the listing date is tentatively scheduled on Dec. 22.
DM Wenceslao on Wednesday said it teamed up with Hongkong Land to develop residential projects over approximately 26,000 square meters of lot in Aseana City.
Hongkong Land is a listed leading property investment, management and development group that owns and manages almost 800,000 sq. m. of prime office and luxury retail property in key Asian cities, principally in Hong Kong and Singapore.
Datem Inc., another construction and property firm, last week decided to defer its planned P4.65-billion IPO due to the uncertainty in the capital markets.