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Friday, March 29, 2024

DoubleDragon hires 2 banks for P10-b share sale

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DoubleDragon Properties Inc. hired RCBC Capital Corp. and BPI Capital Corp. to handle the P10-billion convertible preferred shares in March.

Documents filed with the Securities and Exchange Commission showed DoubleDragon would issue 50 million preferred shares at an offer price of P100 apiece, and another 50 million preferred shares in case of oversubscription.

The company plans to use the nhet proceeds of the shre sale to finance real estate projects in 2016, including the construction of City Malls, 4.8-hectare DD-Meridian Park, 40-story Jollibee Tower, 38-story office and residential development called the Sky Suites Tower and other corporate requirements.

The preferred shares include a convertibility feature which will enable the holders to convert one preferred share into one common share, starting from the second year of the issue date.

The conversion will result in a dilution of approximately 4 percent to existing shareholders.

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Offer period is tentatively scheduled on March 4 to 10 while listing date was set on March 17.

The preferred shares will come from the increase in the company’s authorized capital stock to P20.5 billion from P500 million, which was earlier approved by the company’s shareholders.

DoubleDragon  is a 50:50 joint venture company between Injap Investments Inc. of businessman Edgar Sia II and Jollibee Foods Corp.’s chairman Tony Tan Caktiong.

The company aims to be one of the five largest property companies in the Philippines by 2020 by constructing 1 million square meters of leasable space. 

The company said of the 1 million sqm target, around 700,000 sqm. would represent the floor area of 100 community malls under CityMall brand mostly in Visayas and Mindanao, while the 300,000 sqm would be office and commercial developments.

DoubleDragon said as of end-December, it had secured 41 sites for CityMall developments.

The company now has five CityMalls while 25 more are set to open this year.

DoubleDragon said it was targeting a net income of P1 billion in 2016 and P4.8 billion by 2020.

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