DoubleDragon aims for P4.5B in strong re-IPO

Property developer DoubleDragon Properties has firmed up its reinitial public offering (re-IPO) size at P4.5 billion in an equity deal that has lured foreign investors.

DoubleDragon is offering at least 135 million common shares, with an option to upsize by up to 15 million.

At the price of P30 per share, DoubleDragon’s follow-on offering fetched a premium of 23 percent from the closing price of P24.40 per share on Thursday, when the re-IPO pricing was finalized. Amid overall bearish market conditions, it was at the low end of the P30-P40 indicative price range.

“The book is majority foreign (subscribed),” DoubleDragon chair Edgar Sia II said in a text message.

Sia said P4 billion of the proceeds would be used to fund an expansion program while P450 million would be for a “stabilizing fund to acquire shares below the pricing after the listing.”

“We are extremely happy with the results of the pricing, as it indicates the strong support of the global investing community in the strong growth prospects of DoubleDragon despite the current volatile market conditions,” DoubleDragon chief investment officer Hannah Yulo said in a disclosure to the Philippine Stock Exchange.

Proceeds from the offering will be used to fully fund the rollout of 100,000 square meters of leasable industrial warehouse space to be located in various parts of Luzon, Visayas and Mindanao as well as fuel the company’s hospitality arm to achieve its goal of reaching 5,000 hotel rooms by 2020.

The offering will run from July 2 to 6. The new shares will be listed on the Philippine Stock Exchange on July 13.