D.M. Wenceslao braves bear market, shares slide in debut

MANILA, Philippines — Shares in integrated property developer D.M. Wenceslao & Associates Inc. slumped 14.50 percent on its debut in the Philippine Stock Exchange Friday amid bearish market conditions.

D.M. Wenceslao opened at P11.80 per share, 1.67 percent below the offer price of P12 apiece. The company’s shares were down P1.74 to close at P10.26 each at the stock exchange.

“Despite a volatile market environment over the past months, we are extremely satisfied to successfully complete our offering,” said D.M. Wenceslao CEO Delfin Angelo Wenceslao.

"With our more than 50-year execution record in real estate development and construction, the proceeds raised from our IPO will enable us to expand our real estate portfolio through a mix of commercial and residential projects in Aseana City,” he added.

“These pipeline projects will continue to increase our recurring revenue streams and sustain our long term growth."

About P3.7 billion or 49 percent of net proceeds from D.M. Wenceslao’s initial public offering will be used to fund the development and construction of the company’s nine planned real estate projects.

Approximately P2.9 billion or 38 percent will be used to obtain 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 is the first company to list in the stock market this year. Del Monte Pacific Ltd. early this month said it has deferred the planned initial public offering of its Philippine unit due to “volatile” market conditions.

The Philippine Stock Exchange index, a barometer of investor confidence, has entered into bear market territory after it crashed by more than 20 percent from its January peak. The local bourse, which has slumped 16 percent year-to-date, has been battered by trade war fears and concerns over inflation and the depreciating peso.

On Friday, the main index finished 1.80 percent or 127.11 points higher at 7,193.68. All sectoral counters likewise ended the month in green.

“Philippine stocks ended the session higher to close out the semester on window dressing and some support from the region,” Luis Limlingan of Regina Capital said in a market commentary. — Ian Nicolas Cigaral