DoubleDragon seeks capital hike to P20.5 B

DoubleDragon Properties Corp. has secured the green light from the Securities and Exchange Commission to increase its capitalization to P20.5 billion to cover the issuance of preferred shares.

A joint venture between Mang Inasal owner Edgar ‘Injap’ Sia II and Jollibee Foods Corp. founder Tony Tan Caktiong, DoubleDragon said the new capitalization would consist of five billion common shares with a par value of 10 centavos each and 200 million preferred with a par value of P100 each.

DoubleDragon has already secured the approval of the SEC to issue preferred shares.

The company earlier set a dividend rate of 6.4778 percent per annum for the preferred shares. It received over P26 billion in demand, indicating that the offer had been at least over five times oversubscribed.

The P10 billion consists of a base offer of P5 billion and an oversubscription option of another P5 billion.

Proceeds from the offer will be used to partially finance the development of CityMalls, DoubleDragon Plaza at DD Meridian Park, Jollibee Tower and The SkySuites Tower.

The company is simultaneously constructing 25 CityMalls across various provinces in the Philippines.

DoubleDragon Plaza at DD Meridian Park in the Bay Area and Jollibee Tower located at the heart of the Ortigas Central Business District are targeted for completion by 2018.

In less than two years since its initial public offering at the PSE, DoubleDragon has already secured over two-thirds of the land bank it needs to develop its intended one million square meters of leasable space by 2020.