Property developer DoubleDragon Properties has obtained clearance from the Securities and Exchange Commission to embark on a P7.5-billion follow-on offering.
DoubleDragon will offer 135 million new common shares at P50 per share, with an option to upsize the offering by 15 million shares.
The company now awaits approval from the Philippine Stock Exchange to finalize the timetable for the offering and listing of new shares under the re-initial public offering (IPO) program.
“This exercise is an important step for DoubleDragon that we believe will catapult the company into new levels. During our IPO 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.
Proceeds from the offering will be used to fully fund the roll-out of 100,000 sqms of leasable industrial warehouse space to be located in various parts of Luzon, Visayas and Mindanao as well as fuel expansion of the company’s hospitality arm to achieve its goal of reaching 5,000 hotel rooms by 2020.
Remaining proceeds will be set aside for potential acquisitions and the company’s landbanking activities, as well as for general corporate purposes.
By 2020, DoubleDragon aims to build up 1.2 million sqms of leasable space in line with its goal of having 90 percent of its revenue from diversified recurring revenue sources. —DORIS DUMLAO-ABADILLA