DM Wenceslao to decide on P12.3B IPO after May polls
DM Wenceslao & Associates Inc. of construction magnate Delfin Wenceslao is set to decide on its initial public offering (IPO) plans after the May presidential elections.
DM Wenceslao was supposed to conduct its P12.3 billion maiden offering last December but the company decided to defer its public offering to 2016 due to volatile trading conditions.
Wenceslao said the company is not in a rush to raise funds because it has already secured funding for its capital expenditures for 2016.
“We will decide after the elections. We can’t do anything right now because investors are also waiting for the elections,” he said.
He added the company could also borrow from banks since the company has very low debt level.
Based on latest offer term sheet submitted to the Philippine Stock Exchange, DM Wenceslao plans to sell up to 429 million are primary common shares while selling shareholder Wendel Holdings Inc. has granted the underwriters an option to sell another 64.375 million secondary shares to cover over allotment.
At least 70 percent of the offer shares will be sold to foreign investors while the remaining percent will be sold through domestic retail offer and trading participant of the PSE.
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.