DM Wenceslao down 1.66% in market debut

Property developer D.M. Wenceslao and Associates Inc. braved the market volatility as it pushed through with its debut on the Philippine Stock Exchange, becoming the first company to list in the local bourse this year.

D.M. Wenceslao opened at P11.80 per share, down 1.66 percent from an initial public offering price (IPO) of P12 apiece.

As of 10:17 a.m., the company's shares were trading down 12.50 percent at P10.52 apiece.

"Market as a whole is in bear territory, the pricing came earlier. Of course, maybe the buyers are waiting for a good entry point as we view it as a long-term play," Regina Capital Development Corp. managing director Luis Limlingan said.

D.M. Wenceslao chief executive officer Delfin Wenceslao said he is confident on the growth prospects of the company that's why the IPO pushed through.

"Despite a volatile market environment over the past months, we are extremely satisfied to successfully complete our offering," Wenceslao said.

The D.M. Wenceslao raised a total of P8.1 billion by selling 679.2 million shares or 20 percent of the company's total issued shares at P12 apiece.

The net proceeds amounted to P7.6 billion after deducting the applicable fees and other expenses related to the offering.

About P3.7 billion or 49 percent of the net proceeds will be used to fund the development and construction of the company’s nine planned real estate projects, Wenceslao said.

Around P2.9 billion or 38 percent was earmarked to acquire land assets through potential share acquisitions, while the remaining P1.0 billion or 13 percent is intended to fund the development of infrastructure within Aseana City and for other general corporate purposes.

D.M. Wenceslao has tapped BPI Capital and Maybank as joint global coordinators and bookrunners for the share sale.

Del Monte Pacific Ltd., the first to express intent to go public, deferred its plan to list its local unit Del Monte Philippines Inc. due volatile market conditions. —KBK, GMA News