Dou­ble Dragon fol­low-on of­fer by yearend

Business World - - CORPORATE NEWS - By Arra B. Fran­cia Re­porter

DOUBLEDRAGON Prop­er­ties Corp. tar­gets to is­sue its P7.5bil­lion fol­low-on of­fer­ing be­fore the end of the year, which the com­pany plans to of­fer to both do­mes­tic and for­eign in­vestors.

The listed prop­erty de­vel­oper on Wed­nes­day se­cured share­hold­ers’ ap­proval to pro­ceed with the list­ing of 150 mil­lion com­mon shares in or­der to en­hance its trad­ing liq­uid­ity and strengthen its bal­ance sheet.

“Today it’s ap­proved by the share­hold­ers then to­mor­row hope­fully we’ll kick off with the un­der­writ­ers, both for­eign and lo­cal. Af­ter that we’ll sched­ule the road show and also start pro­cess­ing the reg­u­la­tory ap­proval in the SEC ( Se­cu­ri­ties and Ex­change Com­mis­sion) and PSE ( Philip­pine Stock Ex­change),” Dou­ble- Dragon Chair­man and Chief Ex­ec­u­tive Of­fi­cer Edgar J. Sia II told re­porters af­ter the com­pany’s an­nual stock­hold­ers’ meet­ing in Makati City.

DoubleDragon looks to in­crease its liq­uid­ity as part of ef­forts to be­come part of the PSE in­dex (PSEi) in the next two years.

“Hope­fully within the next two years we’ll be part of the in­dex. Mar­ket cap(ital­iza­tion) okay na, so it’s just the liq­uid­ity. So far for the past two years, all our share­hold­ers, I think, are 100% do­mes­tic re­tail... For the first time, we have for­eign, so they can get the good strate­gic po­si­tion,” Mr. Sia ex­plained.

As of Aug. 30, DoubleDragon’s mar­ket cap­i­tal­iza­tion stood at P99.11 bil­lion.

Of the to­tal of­fer size, P4.8 bil­lion will be used to fund DoubleDragon’s ex­pan­sion un­til 2020, par­tic­u­larly to add 100,000 square me­ters (sq.m.) of leasable in­dus­trial space and 5,000 ho­tel rooms. The com­pany is cur­rently fol­low­ing a 2020 vi­sion that looks to hit 1.2 mil­lion in leasable space in the next three years.

The first build­ing un­der DoubleDragon’s in­dus­trial seg­ment will in­clude 30,000 sq. m. of leasable space in­side Luisita In­dus­trial Park in Tar­lac. Lo­cated in­side the Philip­pine Eco­nomic Zone Au­thor­ity-ac­cred­ited site, the six-hectare prop­erty will be de­vel­oped in four phases, with the first phase of­fer­ing 10,000 sq.m. slated to be ready by the end of the year.

Mr. Sia said the in­dus­trial park hopes to at­tract lo­ca­tors from dif­fer­ent in­dus­tries.

“Iba- iba, mostly for the fast food group. Big users of in­dus­trial spa­ces for com­mis­sary, cold stor­age and distri­bu­tion cen­ters, so the pos­si­ble ten­ants are the fast food com­pa­nies, the con­sumer good com­pa­nies and man­u­fac­tur­ing plants, and lo­gis­tics com­pa­nies,” he said.

Other in­dus­trial spa­ces will be spread out na­tion­wide, with two in North Lu­zon, two in South Lu­zon, two in the Visayas, and two in Mindanao. The DoubleDragon founder noted they have so far pur­chased only one site for these planned projects.

DoubleDragon tar­gets to in­crease its ho­tel port­fo­lio to 5,000 rooms un­der Ho­tel 101 and JinJiang Inn brands by 2020. Ear­lier this month, the com­pany an­nounced plans to de­velop the P2.23-bil­lion Ho­tel 101 in Davao, en­vi­sioned to be the one of the big­gest ho­tels in Mindanao with 519 rooms.

The re­main­ing pro­ceeds of the of­fer will be used for the com­pany’s land bank­ing pur­poses be­yond 2020.

DoubleDragon also re­ported a pos­i­tive per­for­mance for its of­fice leas­ing seg­ment, with Jol­libee Tower in Pasig City set to be com­pleted by 2018. Four tow­ers in­side DD Merid­ian Park, a 4.75-hectare of­fice and com­mer­cial block in the Bay Area, are also al­most fully leased out.

“Al­most all the Tower 1, one floor left. Tower 2 leased out fully. Tower 3, three floors na lang ang kailan­gan,” Mr. Sia said.

Out of the four tow­ers, the sec­ond and third tow­ers will be for on­line gam­ing firms, with the first al­lot­ted for cor­po­rate of­fices, and the fourth for out­sourc­ing firms.

DoubleDragon booked a 110% growth in con­sol­i­dated net in­come for the sec­ond quar­ter of 2017 to P210.7 mil­lion, bring­ing its first half earn­ings to P376.4 mil­lion, 161% up year on year. The in­crease comes on the back of its ef­forts to boost the com­pany’s source of re­cur­ring rev­enues.

Shares in DoubleDragon lost 0.45% or 1.01% to P44 each on Wed­nes­day.

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