The Securities and Exchange Commission approved the P7.5-billion share sale of DoubleDragon Properties Inc.
DoubleDragon, according to documents filed with the SEC, plans to sell up to 135 million common shares with an over allotment 15 million common shares at a price of P50 apiece.
DoubleDragon plans to spend P4.4 billion out of the expected proceeds to finance its venture into the industrial leasing and hospitality business. DoubleDragon plans to roll out 100,000 square meters of leasable industrial warehouse space in several parts of Luzon, Visayas and Mindanao. It also plans to build 5,000 hotel rooms by 2020.
The group is earmarking P1 billion for land banking and P1 billion for potential acquisitions.
“This exercise its an important step for DoubleDragon that we believe will catapult the company into new levels,” DoubleDragon chairman Edgar Sia II said.
“As we approach the completion of our 2020 targeted portfolio comprising of 1.2 million square meters of 120 hectares of prime leasable space, this is a great opportunity for key investments to take part in the hyper growth years of the company,” he added.
DoubleDragon hired Credit Suisse, Maybank Kim Eng, UBS as international book runners and lead underwriters and BPI Capital Corp. and Maybank ATR Kim Eng as domestic lead underwriters and book runners for the fund raising activity.
The planned share sale is expected to result in an increase of the company’s total equity and strengthen its financial position.
The share sale will boost the company’s chances of becoming one of the blue chip stocks in the bellwether Philippine Stock Exchange Index in the near term.
The company earlier increased its 2020 leasable portfolio target to 1.2 million sq. m. comprised of 700,000 sq. m. from 100 CityMalls, 300,000 sq. m. from its Metro Manila office projects, 100,000 sq. m. from the planned 5,000 hotel rooms of Hotel 101 and Jinjiang Inn Philippines, and another 100,000 sq. m. from industrial leasing.
DoubleDragon has just raised its 2020 net income target of P5.5 billion from P4.8 billion.