DoubleDragon files prospectus for follow-on offering

DoubleDragon Properties Corporation has filed a preliminary prospectus with the Securities and Exchange Commission for its planned follow-on offering of shares worth up to R7.5 billion.

In a disclosure to the Philippine Stock Exchange, the firm said this covers a primary offering of up to 135 million common shares at an offer price of up to R50.00 per share with an over-allotment option of up to 15 million shares.

The planned follow-on offering is expected to result in an increase of the DoubleDragon’s total equity, which the Company believes will strengthen its financial position.

As of June 30, 2017 DoubleDragon’s total equity stood at R20.25 billion with total assets at R50.54 billion.

“This exercise is an important step for DoubleDragon that we believe will catapult the Company into new levels,” said DoubleDragon Chairman, Edgar “Injap” Sia II explaining that “during our IPO in April, 2014, there was limited opportunity for large institutional investors to participate.”

The planned follow-on equity offering is expected to enhance trading liquidity and further strengthen the Company’s balance sheet with higher equity levels.

The offering is intended to allow the entry of institutional investors to further strengthen the position of DD in the international investment community, as part of the Company’s aspiration to be included as one of the blue chip stocks in the PSEi in the near term.

Sia noted that, “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.”

DoubleDragon recently increased its 2020 leasable portfolio target from 1 million square meters to 1.2 million sqm. due to the additional 100,000 sqm. from the planned 5,000 hotel rooms of Hotel101 and Jinjiang Inn Philippines and another 100,000 sqm. from the Company’s latest venture into industrial leasing, CentralHub Industrial Centers, Inc.

DoubleDragon has also revised its 2020 net income target to R5.5 billion from R4.8 billion.