Institutional tranche of DM Wenceslao IPO oversubscribed

GMA News l Updated June 11, 2018

The institutional tranche of property developer D.M. Wenceslao and Associates Inc.’s maiden share sale was oversubscribed in light of the low pricing of shares, its underwriter said Monday.

“Institutional tranche was well covered by high-quality domestic and international investors at P12 per share,” Reginaldo Anthony Cariaso, president at BPI Capital Corp., said.

BPI Capital Corp., along with Maybank King Eng Securities Pte. Ltd., were tapped as the joint global coordinators and bookrunners for the offer.

“The institutional tranche is oversubscribed. We look forward to the retail offer period. Good start to the deal,” said Cariaso.

The company priced its IPO at P12.00 per share. It expects to raise up to P8.5 billion by selling 679.2 million shares.

Cariaso declined to share more details regarding the oversubscription.

“I don’t like to use the number of times oversubscribed because, although it sounds nice to the market, it confuses investors,” he said.

DM Wenceslao filed its IPO applications before the Philippine Stock Exchange and the Securities and Exchange Commission in March.

“We are seeing good interest from retail. In my opinion, it’s very good value for investors,” Cariaso said.

The retail tranche is scheduled to take place on June 18 to 22, with the shares set to be listed on the stock exchange on June 29, making the company the first to go public this year.

The company planned for an IPO in 2015 and targeted to raise P15.5 billion at an offer price of P22.90 per share.

The company has said proceeds from the initial offering will be used to “further expand its real estate development footprint through a mix of commercial and residential projects in Aseana City.”

Other firms which were planning to stage an IPO this year included Del Monte Philippines Inc. and Philippines AirAsia Inc. — GMA News