DoubleDragon Plaza
The Philippine Stock Exchange (PSE) has approved a follow-on offering by DoubleDragon Properties Corp. worth as much as P6 billion, proceeds from which will fund the property developer’s “hyper” growth phase.
Based on an offering circular posted by the PSE on Wednesday, DoubleDragon was given the signal to sell to the public as much as 150 million new common shares at a price between P30 and P40 per share.
The offering will run from June 4 to 8 while the listing of the new shares is tentatively set for June 18. The final offer price will be announced on Thursday.
The international bookrunners and lead managers for the offering are Credit Suisse (Singapore) Ltd., Maybank Kim Eng Securities Pte. Ltd. and UBS AG Singapore branch. The domestic lead underwriters and bookrunners are BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners Inc.
DoubleDragon intends to use net proceeds from the offer to expand its industrial leasing and hospitality businesses. This expansion will add 200,000 square meters of leasable space to its portfolio by 2020. On the hospitality business, the goal is to have 5,000 hotel rooms by 2020.
The company also plans to acquire more land to fuel future growth.
When the company debuted on the PSE in April 2014, there was limited opportunity for large institutional investors to participate. As such, this follow-on offering is seen to open up opportunities for foreign investors to take part in the company’s next stage of growth.