DOUBLEDRAGON Properties Corp. received the pre-effective approval of the Securities and Exchange Commission (SEC) for a Primary Offer of up to 135,000,000 Common Shares at an Offer Price of up to P50 per Offer Share, with an Over-allotment Option of up to 15,000,000 Common Shares or Offer indicating an aggregate amount of up to P7,500,000,000.
“This exercise is an important step for DoubleDragon that we believe will catapult the company into new levels. During our Initial Public Offering (IPO) in April 2014, there was limited opportunity for large institutional investors to participate,” said DoubleDragon chairman Edgar “Injap” Sia II.
As DoubleDragon approaches the completion of its 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, he added.
Funds raised from the Offer will be used to fully fund the roll-out 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 balance of the proceeds has been set-aside for potential acquisitions and the company’s landbanking activities for its continued growth beyond 2020 as well as general corporate purposes.
DoubleDragon’s 2020 vision is to accumulate 1.2 million square meters of leasable space in line with its goal of having 90 percent of its revenues from diversified recurring revenue sources.
DoubleDragon’s four pillars of growth continues to strengthen in provincial retail leasing, office leasing, industrial leasing and hospitality which will provide the company with a diversified source of recurring revenues backed by a string of appreciating hard assets.
The Follow on Offering is expected to enhance trading liquidity and further strengthen DoubleDragon’s balance sheet with higher equity levels.
The company aims to be included as one of the blue chip stocks in the PSEi in the near term.
Last September 2016, DoubleDragon was one of five listed companies included in the PSEi reserve list due to the growth in the company’s market capitalization.
Steady trading activity in the stock is one of the important criteria in its inclusion in the PSEi and the company believes that a Follow on Offering will not only increase trading volumes in the stock but will also allow the entry of a good base of institutional investors to further strengthen the position of the company in the international investment community.
The Follow on Offering will also result in the increase of the company’s total equity that will further strengthen its financial position.
As of March 31, 2017 the company’s Total Equity stood at P19.96 Billion with total assets at P49.7 billion.
“This Follow on Offering will be very timely because for the past two years, the company has been very active in numerous international roadshows and conferences, and we have met with over 300 institutional investors across the world. The offering will provide them the opportunity to secure a position in DoubleDragon during its high growth years,” said Hannah Yulo, DoubleDragon chief investment officer./PN
