Edgar “Injap” Sia II
Three years after debuting on the local stock market, property developer DoubleDragon Properties Corp. has filed an application at the Securities and Exchange Commission to raise as much as P7.5 billion from a follow-on equity offering.
“This exercise is an important step for DoubleDragon that we believe will catapult the company into new levels. During our IPO (initial public offering) in April 2014, there was limited opportunity for large institutional investors to participate. As we approach the completion of our 2020 targeted portfolio comprising of 1.2 million square meters or 120 hectares of prime leasable space, this is a great opportunity for key investors to take part in the hyper growth years of the Company,” DoubleDragon chair Edgar Sia II said in a press statement on Thursday.
DoubleDragon seeks to offer up to 150 million in common shares at an offer price of up to P50 each. The base offer will consist of 135 million new common shares plus an overallotment option to sell up to 15 million additional shares in case of strong demand.
The follow-on offering is intended to improve DoubleDragon’s trading liquidity and strengthen its position in the international investment community in line with its aspiration to be included in the local stock barometer Philippine Stock Exchange index in the near term.
The property developer recently increased its 2020 leasable portfolio target from one million square meters (sqms) to 1.2 million square meters comprised of 700,000 sqms from 100 CityMalls, 300,000 sqms its Metro Manila office projects DD Meridian Park and Jollibee Tower, 100,000 sqms from the planned 5,000 hotel rooms of Hotel101 and Jinjiang Inn Philippines, and another
100,000 square meters from its foray into industrial leasing, CentralHub Industrial Centers Inc.
CentralHub will focus on providing standardized multi-use warehouses suited for commissaries, cold storage and logistic centers, some of which will be built to the specifications of large locaters.
DoubleDragon has also upgraded its 2020 net income target to P5.5 billion from P4.8 billion.
As of end-June, the company’s total equity stood at P20.25 billion while total assets amounted to P50.54 billion.