THE SECURITIES and Exchange Commission has authorized property developer DoubleDragon Properties Inc. to increase its capital stock to P20.5 billion and issue preferred shares which had been sold to the public early on.
In a disclosure to the Philippine Stock Exchange on Monday, DoubleDragon said the SEC had approved the amendment in its articles of incorporation creating the preferred shares and increasing the company’s authorized capital stock to P20.5 billion divided into 5 billion common shares with par vale of P0.10 per share and 200 million preferred shares with a par value of P100 per share.
Likewise DoubleDragon has obtained approval to issue preferred shares following its offering and distribution of 100 million preferred shares worth P10 billion to the public.
The PSE earlier clarified that DoubleDragon’s offer pertained to future subscriptions for yet-to-be created preferred shares, adding “this process does not trigger any automatic listing” of the preferred shares on its bourse.
For its part, DoubleDragon has already pitched to the market half of the preferred shares it was now authorized to issue. It has sold through BPI Capital and RCBC Capital P10 billion preferred shares convertible into common shares with an annual dividend rate of 6.4778 percent.
The preferred shares were offered at P100 pesos per share, with minimum investment of P50,000 pesos and increment of P10,000 thereafter.
At the option of the investor, the preferred shares may be converted into common shares of DoubleDragon at a rate of one preferred share to one common share at any time starting the second anniversary up to the fifth anniversary of the issuance. This convertibility option was meant to give the preferred holders possible future upside.