DoubleDragon follow-on offer to raise up to P6 billion

MANILA, Philippines — DoubleDragon Properties Corp., the property company of Mang Inasal founder Edgar “Injap” Sia and Jollibee chairman Tony Tan Caktiong, will proceed with its follow-on offering after getting the green light from the Philippine Stock Exchange (PSE).

With the PSE’s approval, DoubleDragon is ready to issue up to 150 million common shares at an offer price of P30 to P40 each, including an over-allotment option of up to 15 million common shares, to raise up to P6 billion.

The offer price is slightly lower than the initial price of P50 per share and the targeted amount of P7.5 billion.

Sia, the company’s chairman, said the exercise is an important step for DoubleDragon to move up the next level as a property giant following its initial public offering in April 2014.

“As we approach the completion of our 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 said.

The funds to be raised from the offer would be used to fully finance 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, Hotel 101, 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 land banking 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 deriving 90 percent of its revenues from diversified recurring revenue sources.

At present, 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.

DoubleDragon targets to have 100 CityMalls by 2020. These are small community malls that introduce modern retail in provinces all over the country. At present, there are now 30 CityMalls nationwide.

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