Property company raising P1.16B from planned IPO

Property developer DoubleDragon Properties Corp., a joint venture between entrepreneur Edgar “Injap” Sia II and Jollibee group founder Tony Tan Caktiong, plans to raise as much as P1.16 billion from a stock market debut.

DoubleDragon has filed with the Securities and Exchange Commission (SEC) an application to sell 579.73 million new shares to the public at an offer price of up to P2 each.

Riding on a strong investor interest in Philippine consumer plays, proceeds from the IPO will mostly be used to build a chain of community malls around the country. The target is to roll out 100 community malls by 2020, the same year that DoubleDragon aims to join the ranks of the country’s leading property developers in the country.

This initial public offering (IPO) will bring to public hands up to 26 percent of DoubleDragon’s capital stock. At the maximum offering size, this will give it a market capitalization on P4.46 billion.

Based on a briefer from DoubleDragon, the company intends to use the proceeds from the IPO to fund upcoming residential, commercial and mixed-use real estate developments. But the bulk of the IPO proceeds will be used to jumpstart what will be its flagship project, a chain of community malls called CityMall.

CityMall is envisioned to become one of the biggest independent community mall chains in the country with a footprint of about 5,000 to 10,000 square meters each. Each community mall will be located in prime locations all over the country, mostly in the Visayas and Mindanao.

All CityMalls will generally have the same theme, color and look, making the mall design a brand in itself. The supermarket area will be offered to leading grocery chains like SaveMore, Robinson’s, Puregold, Wellcome and Super8.

“CityMall is  ‘greenergized.’ It will be equipped with solar panels and rain water collection system to help save Mother Earth and optimize efficiency. CityMall is poised to become the preferred ‘Everyday Mall’ of the future,” said Sia, who chairs DoubleDragon.

The company has acquired a 12,654-sq m commercial land in Arnaldo Boulevard, Roxas City, which will be the site of the first of many CityMalls to rise around the country.

Apart from its retail property project, DoubleDragon also intends to complete three office towers over the next six years in different central business districts of Metro Manila. This aims to create a portfolio of office space for lease to corporate and business process outsourcing (BPO) tenants.

In 2013, DoubleDragon posted a net profit of P126.63 million, up 37 percent from a year ago.

DoubleDragon was previously known as Injap Land Corp. which started in 2009 as a wholly owned subsidiary of Sia’s holding company, Injap Investments Inc. Tan Caktiong’s HoneyStar Holdings later acquired 50 percent of the company, which thus became an equal venture and renamed to DoubleDragon.

Sia founded the Mang Inasal grilled chicken franchise, of which a 70-percent interest was sold to Tan Caktiong-led Jollibee Foods Corp. in 2010.

The “DoubleDragon” branding was conceptualized as both Sia and Tan Caktiong were both born in the Lunar Year of the Dragon and their property partnership was also finalized in a Year of the Dragon.