SEC oks P1.16-B DoubleDragon IPO

MANILA, Philippines—The Securities and Exchange Commission has approved a plan by property developer DoubleDragon Properties Corp., a joint venture between entrepreneur Edgar “Injap” Sia II and Jollibee group founder Tony Tan Caktiong, to raise as much as P1.16 billion from a stock market debut.

DoubleDragon was allowed to register 579.73 million new shares which the company plans to offer to the public at an offer price of up to P2 per share, based on documents from the SEC.

Unicapital Inc. and RCBC Capital Inc. were mandated as joint lead underwriters of the offering, which is targeted to run from March 26 to April 1 for listing on April 7 this year but subject to approval by the Philippine Stock Exchange.

Excluding underwriting and other costs, net proceeds from the IPO are estimated by the company at P1.03 billion, which the company plans to use to start a chain of community malls around the country. The target is to roll out 100 community malls  by 2020.

Proceeds are seen sufficient to fund the development of the first five CityMalls, the acquisition of land and pre-development works as well as for general working capital.

This initial public offering will bring to public hands up to 26 percent of DoubleDragon’s capital stock. At the maximum offering size, this will give it a market capitalization of P4.46 billion.

CityMall, which the company intends to be its flagship project, is envisioned to become one of the largest independent community mall chain in the country with a footprint of about 5,000 to 10,000 square meters each. Each community mall will be located in prime locations all over the country, mostly in the Visayas and Mindanao.

Ahead of the IPO, tycoon Henry Sy-led SM Investments Corp. has acquired a 34 percent stake in DoubleDragon’s community shopping mall development unit CityMall Commercial Centers Inc. (CMCCI) where DoubleDragon will keep a 66 percent interest as well as management control.