DoubleDragon beefing up capital stock

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.

In a disclosure to the Philippine Stock Exchange 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 value of P0.10 per share and 200 million preferred shares with a par value of P100 per share.

DoubleDragon has also obtained approval for the issuance of 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.

DoubleDragon has already pitched to the market half of the preferred shares that it was 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 per share, with minimum investment of P50,000 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.

DoubleDragon, previously known as Injap Land Corp., was started by entrepreneur Edgar “Injap” Sia II—who founded the Mang Inasal Chicken Bacolod restaurant chain—as a subsidiary of holding company Injap Investments Inc.

HoneyStar Holdings of Jollibee Foods Corp. founder and former chief executive officer Tony Tan Caktiong later bought into the company, making it an equal venture before it became a public company.

The bulk of the proceeds will be used to expand the group’s chain of community shopping malls under the “CityMalls” brand, which will have a total of 30 malls on stream mostly in Visayas and Mindanao by the end of this year. Some will be used to construct Meridian Park, a 4.8-hectare office and commercial development at the corner of Macapagal Avenue and Edsa Extension, as well as Jollibee Tower, a 40-storey corporate building at the Ortigas central business district.

DoubleDragon aims to derive 90 percent of its total revenue from recurring sources by 2020 as all of its commercial and office leasing projects will be on stream. Through flagship subsidiary CityMall Commercial Centers Inc. (CMCCI), the group expects to roll out 100 CityMalls by that time, mostly in “underserved” markets in Visayas and Mindanao.