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MANILA — Construction firm DM Wenceslao said it was giving shareholders value, as it defied the bear market with its initial public offering on Friday.

Shares of the company were down 19 percent to P9.74 at noon, from an offer price of P12 per share. It had hoped to raise as much as P8.15 billion. The main index was up 0.94 percent to 7,132.72.

"The basic story of the IPO is we are raising funds to grow the company," said company president Delfin Wenceslao.

DM Wenceslao shares fall in stock exchange debut

The IPO was priced when the Philippine Stock Exchange Index was at 9,000 points, Wenceslao said. The index fell 20 percent from its January peak on June 20, entering bear market territory.

"The growth prospects didn't change, it's just the sentiment. The price went down, we left more money on the table," he said.

Deducting fees and charges, the company raised P7.6 billion from the IPO, of which, P3.7 billion will be used to develop 9 projects, P2.9 billion will be used to acquire land, while P1 billion will be devoted to infrastructure in ASEAN City.

The Manila Bay area, where ASEANA is located, will be a major growth driver, housing business process outsourcing, logistics and gaming firms.

The company has a land bank that will last for 15 years, 35 percent of which are outside the Bay Area and are located in Cavite, Quezon City and Makati. It also has assets in Mindanao and a proposed project in Mandaue City.

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