The Market Monitor Minding the Nation's Business
By Riza Lozada
Land, building and property developers remain upbeat on the economy, and three of them planning initial public offerings (IPOs) that aim to raise a total of P23.77 billion before the end of the year.
The Philippine Stock Exchange Inc. (PSE) has approved the IPO applications of real-estate developer Italpinas Development Corp. (IDC), and construction firms Datem Inc. and D.M. Wenceslao & Associates Inc.
They will be joining the roster of IPOs in 2015, following in the footsteps of Crown Asia Chemicals Corp. and SBS Philippines Corp., which listed in April and August, respectively.
“We are pleased that three more companies are set to be listed on the Exchange before the year ends, bringing us around the P200 billion capital-raising level this year,” PSE President and CEO Hans B. Sicat said.
“We believe this series of offerings should be welcome news to investors and the capital market in general. This signals the ability of the Philippine market to offer a wide range of transactions, even amid some financial volatility in other parts of the world. We hope this will encourage more potential issuers to tap the stock market for their funding requirements,” he added.
Based on its offering memorandum, Italpinas will be the first among the three companies to debut in the stock market.
The sustainable-property developer aims to raise as much as P242.18 million from its maiden offering this month.
Datem and D.M. Wenceslao, on the other hand, plan to raise up to P4.65 billion and as much as P18.88 billion, respectively, from their IPO listing set in December.
Datem and D.M. Wenceslao will be listed on the main board of the Exchange, while Italpinas will be the third to list on the SME board of the PSE since 2014.
D.M. Wenceslao plans to float 429.17 million common shares, with an option for 64.37 million additional shares, as overallotment at a targeted offer price of P44 per share.
The issuer will be D.M. Wenceslao and the selling shareholder will be Wendell Holdings Inc.
The joint global coordinators and bookrunners will be BPI Capital Corp., CLSA Limited; Deutsche Bank AG, Hong Kong branch; and Maybank Kim Eng Securities Pte. Ltd.
The international lead managers and underwriters are CLSA Limited, Deutsche Bank AG, Hong Kong Branch and Maybank Kim Eng Securities Pte. Ltd.
The domestic lead managers and underwriters will be BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners Inc.
“The Offer Shares are expected to be listed on the PSE main board under the symbol “DMW”, on or about December 8, 2015,” the company reported.
The institutional offer will be at least 70 percent of shares, and will be offered and sold outside the Philippines and the United States in offshore transactions.
The optional shares will be offered to trading participants and retail buyers.
The offer period starts on November 24 and ends on December 1.
“We intend to use a majority of our net proceeds from the Firm Offer to fund the development of our pipeline projects, obtain land assets through potential share acquisitions, develop infrastructure within Aseana City and for other general corporate purposes,” D.M. Wenceslao said in a statement.
IDC will issue 57.6 million shares comprising 26 percent of the company’s total authorized and outstanding capital stocks.
The offer shares will be allocated to all PSE brokers for a total of 11,525,000 shares for targeted a price of P4.20 per share. Local small investors (LSIs) will be allocated 10 percent or 5.76 million shares.
The offer period starts on Nov. 23 ends on the Nov. 27. Italpinas said it will release the final offer price on November 13, as it expecting to be listed in the PSE by Dec. 7.
IDC said the P242 million it expects to raise from the IPO would be used for capital expenditures on new projects, as well as land banking and acquisition.
The company said it has been successful in its first property development project, Primavera Residences, and intends to continue with the development of Primavera City using a portion of the proceeds of the offer.
IDC plans to acquire land in Lipa, Batangas; Dumaguete, Negros Oriental; and Iloilo City.
Datem will offer 286 million common shares with option for overallotment of 42.9 million shares.
The firm shares are 70 percent allotted for the general public and qualified buyers, 20 percent allocated for PSE trading participants and 10 percent for LSIs with an offer price of up to P14.15 per share.
Datem’s book building period started from October 26 to Nov. 17. The PSE trading participants commitment period will be from Nov. 24 to 26; the LSIs offer period will be from Nov. 24 to Dec. 1; and the joint lead underwriters and the bookrunners offer period will be from Nov. 24 to Dec. 1.
Datem said proceeds from the bourse listing would be used to finance expansion projects including relocation of precast plant facilities, real estate development, bulk water supply, and infrastructure projects on the government’s private-public partnership.
The company has undertaken construction of the Technology Incubator Center Project at the Fort Bonifacio Institutional Park, Taguig, for Fort Bonifacio Development Corp.; The Forbes Tower Architectural Interior Finishing Works for UCPB Properties, Inc.; the St. Luke’s Diagnostic Center Structural and Architectural Finishing Works for St. Luke’s Medical Center; the substructure works of the One Legaspi Park Project at Rada St., Legaspi Village, Makati City; the Greenbelt Redevelopment Project located in the Greenbelt Area for Ayala Land Inc. on a joint venture with Makati Development Corp., the three-story warehouse office building in Caloocan City for Phil. Suntal Corp., the Turf Club Building in San Lazaro Leisure Park, Carmona, Cavite, for the Manila Jockey Club; and the Market! Market! project in Bonifacio Global City for Ayala Land.
In an another development, listed firm Double Dragon (DD) has disclosed plans to issue preferred shares to fund its five-year capital expenditure to build some 100 city malls across provinces and to develop 4.8 hectares of prime commercial park (DD Meridian Park) in the Bay Area, Metro Manila.
With total assets jumping by 35 percent to P24.9 billion as of end-September this year, DD reported revenues will further improve upon the rollout of its planned one million square meters of leasable space available from the City Malls nationwide.