DoubleDragon gets Securities and Exchange Commission nod for P7.5 billion follow-on offer

MANILA, Philippines — DoubleDragon Properties Corp. (DoubleDragon) has received the green light from the Securities and Exchange Commission (SEC) to raise up to P7.5 billion in a follow-on offer.

The SEC has approved DoubleDragon’s primary offer of up to 135 million common shares at an offer price of up to P50 per offer share with an over allotment option of up to 15 million shares.

DoubleDragon is the listed property developer of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong,

Sia said the amount would fund the company’s foray into industrial leasing, another leg in its fast growing and diverse property portfolio of community malls, office space and hotels. It will also fund the expansion of the hotel business.

“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,” Sia said.

Now, the company is approaching 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,” Sia also said.

“The 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,” DoubleDragon said on its follow-on offering.

The balance is for potential acquisitions and land banking activities for its continued growth beyond 2020 as well as general corporate purposes.

Sia said 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.

In all, DoubleDragon has a target to have 100 CityMalls by 2020. These are small community malls that introduce modern retail in tier 3 provinces all over the country and there are now 30 CityMalls.

For its office business, the company has two Metro Manila office projects, the Jollibee Tower and DD Meridian Park.