DM Wenceslao

DMWAI’s lower IPO price may spark interest

PROPERTY DEVELOPER and construction firm D.M. Wenceslao & Associates, Inc. (DMWAI) has priced its initial public offering (IPO) at a discount, which analysts said would make the offer more attractive to investors given the persistent volatility in the stock market.

In a listing notice posted to the stock exchange on Monday, DMWAI said it has priced its IPO at P12 per share, significantly lower than the maximum price of P22.90 per share it announced before.

The final offer price will allow the company to raise P8.15 billion from the issuance of 679.17 million shares, and up to P9.37 billion should it exercise its overallotment option of up to 101.88 million shares.

DMWAI had initially targeted to raise P15.55 billion from its primary offer, and up to P17.89 billion including the overallotment option.

“Investors will look at it as an opportunity to buy. Since it looks like the company (is giving) the investing public some room for price appreciation. From an investors’ standpoint, it’s a huge discount most especially (since) the maximum price is P22.90,” UPCC Securities Corp. Trader Aristotle D. Reyes, Jr. said in a text message.

Timson Securities, Inc. trader Jervin S. De Celis noted the company may have opted for a lower price due to the market’s volatility.

“I think they did it on purpose as the market’s volatility may dampen investors’ appetite for IPO’s so lowering the offer price will make it attractive to the investing public,” Mr. De Celis said in a separate message.

The volatility in the market has already discouraged Del Monte Philippines, Inc. from pushing through with its planned P17.55-billion share sale this month, announcing last week that it will wait for the market to stabilize before proceeding with the IPO.

Despite the discount, Mr. De Celis is keeping a conservative stance on the stock’s performance given the size of the offer.

“However, I don’t expect that this stock will perform as stellar as the IPO of DoubleDragon (Properties Corp.) and Xurpas, (Inc.) a few years ago, when those stocks rallied on the first day of trading since DMWAI’s offer is too big,” Mr. De Celis added.

DMWAI will use the net proceeds of the offer to finance its projects in the 204-hectare Aseana City in Parañaque City. The company has nine projects lined up in the area set to be completed in the next five years.
In a market note, brokerage F. Yap Securities, Inc. cited DMWAI’s land bank of 56.91 hectares in Aseana City as one of its competitive strengths.

“(DMWAI) currently has a land bank of 77.56 hectares in the Philippines, that will meet the development needs for the next 10 years. Bulk of this is in Aseana City (56.91 hectares) with a value at around P132.8 billion, including existing properties and current developments,” according to F. Yap Securities.

However, the brokerage also said that “stiff competition from other developers in close proximity” may also affect the company’s performance. Aseana City is located near the SM Mall of Asia complex, as well as Entertainment City.
DMWAI’s IPO is set to run from June 18 to 22, with target listing at the stock exchange on June 29. It will have the ticker DMW.

The company has engaged BPI Capital Corp. and Maybank King Eng Securities Pte. Ltd. as the joint global coordinators and bookrunners for the offer, with the latter also acting as international lead manager and underwriter.


Attached Files Image(s)

D.M. Wenceslao to spend P12B on Aseana City over next 5 years

D.M. Wenceslao & Associates, Inc. (DMWAI) will be spending P12 billion over the next five years to develop its mixed-use estate in Pasay City, banking on the rising demand for residential, retail, and commercial spaces in the area.

The newly listed property and construction firm said this spending plan will allow for the development of projects covering 400,000 square meters in the 204-hectare mixed-use business district Aseana City. “(Development) depends on demand, whether the market can readily absorb it. At least for the next five years, that’s the demand we’re seeing,” DMWAI Chief Executive Officer Delfin Angelo C. Wenceslao said in a press briefing in Pasay City on Thursday.

The company has alloted P3.1 billion for its capital expenditures in 2018, more than three times higher than the P850 million it spent in 2017. DMWAI is set to spend P3.5 billion for 2019 and P4.3 billion for 2020, while the balance will be spent from 2021 to 2022.

DMWAI raised P8.1 billion through an initial public offering on June 29, which will be used to partially fund its capex for the coming years.

The property firm lined up nine projects that will be completed in the next five years, three of which are residential projects with a total saleable floor area of 88,000 sq.m., and six commercial developments covering 280,000 sq.m of leasable space.

These will be added to DMWAI’s existing projects in Aseana City, most of which are leasing spaces — Aseana One, Aseana Two, Aseana Powerstation Building, Aseana Town Center, and Aseana Square.

“We have logistics companies because they want to be near the port and airport areas, BPOs, traditional, and gaming…Majority are really the traditional companies, shipping, logistics, manning companies,” Mr. Wenceslao said.

Of the 80,000 sq.m of office leasing under their portfolio, Mr. Wenceslao said around 30% has been taken up by online gaming companies. The company is limiting their exposure to the gaming industry to around 30-40% of their portfolio.

“If you take away the areas that have been leased, developed, the areas for our future pipeline that is four hectares, you’re left with roughly 29 hectares. It’s still good for, at least for our development, 10 years,” Mr. Wenceslao said.

The DMWAI executive noted that Aseana City comprises around 65% of their current land bank, with rest located in Cavite, Quezon City, and Makati. The company, however, does not intend to develop their other properties any time soon.

“Majority of the real estate development activity we see it (in Aseana) ’cause this is where the action is,” he said.


nag test buy@9.5 ...bagsak!! lolz
Bullish or Bearish, I will Buy .... Autem Neque Me Invito Tactiost! \m/
...bili ka ulit! Big Grin

buy somemore ako dito ...
Bullish or Bearish, I will Buy .... Autem Neque Me Invito Tactiost! \m/
(07-24-2018, 11:18 AM)DUCK DODGERS Wrote: buy somemore ako dito ...

...good for you Tongue


...ayun kaya pala mahina...humina ang kita

D.M. Wenceslao profit slips 6%

D.M. WENCESLAO & Associates, Inc. (DMW) saw its attributable profit slip by 6% in the second quarter, as revenues likewise slowed during the period.

In a regulatory filing, the newly listed property developer reported a net income attributable to the parent of P503.13 million in the three months ending June, lower than the P535.32 million it realized in the same period a year ago.

The profit drop followed a 41% decline in DMW’s revenues to P637 million, versus the P1.07 billion it generated during the second quarter of 2017.

DMW’s performance in the first quarter allowed it to grow its attributable profit by 42% in the first half of the year to P969.8 million. The company attributed the increase to its core leasing business and the addition of an investment property.

“Strong execution from our marketing, and construction teams is accelerating momentum across our businesses. We have completed our third commercial office building ahead of schedule and within budget,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao said in a statement.

Mr. Wenceslao said the early delivery of the project allowed it to add more than 30,000 square meters of leasable area to its portfolio, which has already been fully leased out by the end of 2017.

Revenues reached P1.2 billion for the first semester, 23% lower year-on-year. Recurring income accounted for 80% of the total revenues, mainly due to the completion of the new office building.

Rentals of land went up by 5% P482.2 million, while rentals of buildings grew by 70% to P351.9 million. The company’s residential segment contributed P119.5 million in revenues, 6% higher than the same period year before. Meanwhile, revenues from the construction segment went up 19% to P114.5 million.

The company was able to start construction of another office building called 8912 Asean Ave. during the first six months of the year. The latest project will add 68,890 sq.m. of leasable space under DMW’s portfolio by the time it is completed in 2021.

“We have a clear set of strategies centered around portfolio expansion through a combination of land and commercial leasing and residential sales growth. We are continuing to ramp up the business — strategically and with a long-term mind-set — while also taking decisive action that could produce meaningful returns to our shareholders in the quarters and years ahead.” Mr. Wenceslao said.



...ok naman pala DMW eh Tongue

DMW keen on gov’t infrastructure projects

D.M. Wenceslao & Associates, Inc. (DMW) is planning to participate in infrastructure projects of the government which may require expertise on dredging, land reclamation or horizontal construction, a top official said.

“If it’s something related to what we can do, dredging or land reclamation or horizontal construction, then we will participate,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao told reporters after a tour of the company’s Aseana City estate in Parañaque on Friday.

Mr. Wenceslao said the company is looking at participating in projects such as the Laguna Lakeshore Expressway Dike project and Sangley Point Airport in Cavite — both of which require dredging and land reclamation.

“Right now we’re looking at, if matuloy yung Laguna Lake, because at the time before, people were contacting us about the dredging part,” Mr. Wencesalao said.

The P123-billion Laguna dike project — previously the biggest public-private partnership (PPP) project of former President Benigno S. Aquino III — involves a 47-kilometer flood control dike on top of a six-lane expressway from Taguig City to Los Banos. It also includes the reclamation of 700 hectares of the expressway-dike.

The project however has been deferred after the three groups that qualified for the PPP did not submit offers. The Department of Public Works and Highways then decided to pursue the project’s components separately, starting with the P50-billion Laguna Lakeshore Road Network Project that will connect Metro Manila to areas surrounding the Laguna Lake.

Mr. Wenceslao said the company is also considering participating in the reclamation portion for the airport project in Sangley Point, Cavite. There are currently two proposals for an airport in the area, including a $9.3-billion airport bid by Cavite’s provincial government which will reclaim around 1,500 hectares of land.

The other proposal consists of the $12-billion Philippine Sangley International Airport submitted by the consortium of Solar Group’s Wilson Y. Tieng and tycoon Henry T. Sy, Sr. The plan includes the reclamation of around 2,500 hectares of land north of Sangley peninsula.

“Kasi may reclamation project din dun (There’s also a reclamation project in Sangley). That’s something we can do. There are only one or two reclamation companies in the country with a track record,” Mr. Wenceslao said.

Aside from its interest in government projects, DMW is currently processing the permits for its proposed reclamation project in the city of Mandaue in Cebu. The company is tapping a Belgian firm as its reclamation contractor for the project, which covers around 200 hectares.

DMW’s net income attributable to the parent grew 42% to P969.8 million in the first half of 2018, as revenues likewise gained 23% to P1.2 billion during the period.

The newly-listed property and construction firm will be spending P12 billion in the next five years for the development of projects in the 204-hectare Aseana City, including office, residential, and retail spaces.



...nice plan on the Aseana property by DMW

Why DMW is limiting exposure to PHL offshore gaming operators

D.M. WENCESLAO & Associates, Inc. (DMW) is limiting its exposure to Philippine Offshore Gaming Operators (POGOs) to around 30% of the company’s tenant mix in the Bay Area.

“We’re in the entertainment area, we’re focusing at somewhere between 30%. We just don’t want to be exposed to one specific industry,” DMW Chief Executive Officer Delfin Angelo C. Wenceslao told reporters after a tour of the company’s mixed use estate called Aseana City in Parañaque last Friday.

Mr. Wenceslao noted majority of their tenants are traditional companies, consisting of shipping, logistics, manning, and banks. These types of firms occupy around 50 to 60% of DMW’s existing office space in Aseana City.

Meanwhile, Business Process Outsourcing (BPO) firms account for around 20-30%. Mr. Wenceslao said the buildings in the pipeline in Aseana City are mostly targeted towards BPOs, since they are built with the highest specifications and provisions for telco, data, and back-up power, among others.

DMW will be developing nine projects in Aseana City in the next five years. This includes three residential developments with a total saleable floor area of 88,000 square meters (sq.m.), the first of which called Pixel Residences is due for completion in October 2019. The other six projects will be commercial areas spanning 280,000 sq.m.

DMW previously disclosed that it will be spending P11 billion until 2020 for these projects.

To-date, DMW has seven completed projects in Aseana City, with a total leasable floor area of 59,027 sq.m. Among these are commercial projects called Aseana One, Aseana Two, Aseana Three, Aseana Town Center, and Aseana Square, all of which are already fully leased out.

The company recently broke ground for its fourth office building, 8912 Aseana Avenue which will offer around 68,900 sq.m of gross leasable area. The 15-storey building will have retail, office, and parking components.

For the residential segment, DMW is set to launch its next project with a total of 670 units offering units ranging from studio to three-bedroom units.

Aside from its own projects, the company has also leased out parcels of land in Aseana City to other companies, including Ayala Land, Inc. (ALI).

The Ayala-led property developer is currently developing 9.5 hectares of land in the area for Ayala Malls Bay Area, which will house a mall with supermarket operator Landmark, ALI’s homegrown hotel brand Seda, as well as office spaces. The project stands across integrated resort and casino City of Dreams Manila.

DMW has asked locators and developers inside Aseana City to build arcade walkways and canopies where necessary, for their employees and the public.


9-10 Cebu reclamation project Smile

DM Wenceslao eyes new Cebu reclamation project

MANILA, Philippines — D.M. Wenceslao & Associates Inc. (DMWAI), the newly listed integrated property company, is seeking to develop another reclamation project in Cebu of similar scale to the Aseana City, its flagship project in Parañaque.

In a recent briefing, DMWAI chief executive officer Delfin Angelo Wen-ceslao said they are planning to undertake a reclamation project in Mandaue, Cebu, similar to Aseana City, and develop it into a mixed use project.

“It will be about 150 to 200 hectares,” Wenceslao said. 

The company is now securing the permits required from both the local and national governments. 

Once it receives the go-signal, DMWAI will tap a Belgian firm to help in the reclamation. 

Wenceslao said that with the company’s success in Aseana City, they are optimistic as well on the prospects of the Cebu development.

As a mixed-use project, there would be commercial, retail and residential developments in Cebu, Wenceslao said. “It’s so easy to bring the competency somewhere else,” he said.

DMWAI is also interested in other infrastructure projects including those involving reclamation such as the P50 billion Laguna Lakeshore Road Network Project and the proposed airport in Sangley, Cavite. 

“There’s reclamation and that’s something we can do. There are only one or two reclamation companies in the country with a track record,” Wenceslao said.

In Aseana City, the company remains committed to provide sustainable city-scale real estate projects.

Aseana, he said is poised to become The Next Generation City.

In particular, he said the project would have large scale developments which adhere to global standards and design. 

Aseana City also has a city management system modelled after Cisco’s systems smart connected city network, which is part of its information and communication technology backbone.

The company reported a 42 percent increase in net income at P969.8 million in the first half on the back of the strong growth of the company’s core leasing business. 

“Strong execution from our marketing and construction teams is accelerating momentum across our businesses,” he said. 

The company has completed its third commercial office building ahead of schedule and within budget, Wenceslao said. 

“The early delivery added over 30,000 square meters of leasable gross floor area which was fully leased out as of the end of 2017,” he said. 

Revenues reached P1.2 billion with recurring income contribution reaching 80 percent primarily due to the completion of a new office building.

Construction remains on track for residential condominium project Pixel Residences which is expected to be completed by 2019.

Moving forward, Wenceslao said the company would continue to ramp up the business – strategically and with a long-term mindset – while also taking decisive action that could produce meaningful returns to shareholders in the years ahead.



Forum Jump:

Users browsing this thread: 1 Guest(s)