PUBLICLY-LISTED DoubleDragon Properties Corp. (DD) has filed a preliminary prospectus with the Securities and Exchange Commission (SEC) for a P6.75 billion follow-on offering to enhance trading liquidity and strengthen the company’s balance sheet with higher equity levels.
The preliminary prospectus filed with the SEC covers a primary offer of up to 135 million common shares priced at P50 per offer share, with an over-allotment option of up to 15 million common shares, indicating a base size of P6.75 billion with an over-allotment option of up to P750 million
“This exercise is an important step for DoubleDragon that we believe will catapult the Company into new levels,”
DD said in a disclosure to Philippine Stock Exchange on Thursday.
DD also revised its 2020 net income target to P5.5 billion from P4.8 billion as the offering is expected to usher more foreign investors.
“During our IPO in April 2014, there was a limited opportunity for large institutional investors to participate. As we approach the completion of our 2020 target portfolio…this is a great opportunity for key investors to take part in the hyper growth years of the company,” DD Chairman Edgar Sia 2nd said in the disclosure.
The developer also adjusted its 2020 leasable portfolio target to 1.2 million square meters from 1 million square meters.
Additional leased spaces from CityMalls, its Metro Manila office projects DD Meridian Park and Jollibee Tower, Hotel101 and Jinjiang Inn Philippines, and its latest venture into CentralHub Industrial Centers are expected to drive the company to meet its target.
As of the first half of the year, the company’s total equity stood at P20.25 billion with total assets at P50.54 billion.