MANILA, Philippines - D.M. Wenceslao and Associates Inc. (DMWAI) has decided to defer its initial public offering (IPO) to next year.
DMWAI was slated to debut on the local bourse on Dec. 22.
However, in a letter to the Philippine Stock Exchange (PSE) on Friday, DMWAI said the Dec. 22 listing date was too close to the holidays.
“After due consideration of the proposed IPO timeline, where the listing of DM. Wenceslao & Associates Inc. will be very close to the year-end holidays, the company has decided to defer the launch of the IPO to next year,” it said.
Prior to its announcement of deferral, DMWAI also lowered its offer price to P25 per share from the previous price announcement of P44 each.
The downward adjustment in the offer price comes amid the prevailing market volatility.
Another IPO-bound construction giant, Datem Inc. likewise deferred its listing to the first quarter of 2016 instead of the scheduled Dec. 8 listing.
Analysts said the prevailing market volatility likely discouraged IPO-bound companies to proceed with their market debut this year.
DMWAI is eyeing to raise P12.34 billion from a previous target of P21.72 billion through an offering of 493 million shares including an over allotment option of 64.37 million shares.
In its latest term sheet, the property firm said it plans to sell at least 70 percent of the offer shares to foreign investors and the sell the balance to local investors.
Proceeds would be used to fund the development of the company’s pipeline projects.
“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 our other general corporate purposes,” the company said.