DoubleDragon Properties Corp. reduced the value of its planned share sale to P6 billion after lowering the offering price to between P30 and P40 apiece.
DoubleDragon adjusted the offering price after the share price recently dropped because of the current volatility in the equities market.
The company initially planned to raise as much as P7.5 billion from the sale of 150 million common shares at an offering price of P50 apiece when it filed a registration statement with the corporate regulators in March.
The Philippine Stock Exchange recently approved DoubleDragon’s share sale plan.
The company set the offering period from June 4 to 8 and the listing date on June 18.
DoubleDragon plans to sell up to 108 million shares to foreign investors and 20 percent to domestic buyers.
The company has tapped Credit Suisse (Singapore) Ltd., Maybank Eng Securities Pte Ltd., and UBS as international book runners and lead managers and BPI Capital Corp. and Maybank ATR Kim Eng Capital Partners Inc. as domestic lead underwriters.
DoubleDragon plans to use the net proceeds from the offering to finance the company’s industrial leasing and hospitality business. It is set to add 200,000 square meters of leasable space to its portfolio by 2020.
DoubleDragon also plans to spend for land acquisition to fuel growth of the business beyond 2020 and for general corporate purposes.
DoubleDragon earlier said the planned share sale would result in an increase of the company’s total equity, which the company believes would strengthen its financial position.
The share sale is also expected to 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 1.2 million sq. m. comprising 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 its latest industrial leasing.
DoubleDragon increased its 2020 net income target to P5.5 billion from P4.8 billion.
