DoubleDragon Properties Corp. said it hired four banks to handle a P7.5-billion follow-on offering that aims to expand the property developer’s public float and attract more long-term foreign investors.
DoubleDragon said in a filing with the Securities and Exchange it would offer 135 million primary shares at P50 apiece that would raise P6.75 billion in proceeds. An over allotment option of up to 15 million shares was also set aside which would boost total proceeds to P7.5 billion.
The P50-per-share offer price is 16.4-percent higher than the stock’s closing price of P42.95 on Wednesday, when the company’s registration statement was filed with the SEC.
DoubleDragon hired Credit Suisse, Maybank Kim Eng and BPI Capital Corp. as underwriters for the offering.
The planned share sale is expected to result in higher total equity which the company said would strengthen its financial position. DoubleDragon’s total equity stood at P20.25 billion as of end-June. Total assets reached P50.54 billion.
“This exercise is an important step for DoubleDragon that we believe will catapult the company into new levels. During our IPO in April 2014, there was limited opportunity for large institutional investors to participate,” DoubleDragon chairman Edgar Sia II said.
“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 company raised its 2020 leasable portfolio target to 1.2 million square meters comprised of 700,000 sqm from 100 CityMalls, 300,000 sqm from its Metro Manila office projects, 100,000 sqm from the planned 5,000 hotel rooms of Hotel 101 and Jinjiang Inn Philippines and another 100,000 sqm from industrial leasing.
DoubleDragon also upgraded its 2020 net income target to P5.5 billion from P4.8 billion.