Shares of newly listed DoubleDragon Properties Inc. soared on their market debut on Monday, reflecting strong investor confidence in the company and in the names behind it, which are none other than the founders of popular fast food chains Mang Inasal and Jollibee Foods Corp.
DoubleDragon, which also has a tie-up with SM Group, saw its shares surge 20 percent at the opening bell to P2.40 per share from the IPO price of P2.00 per share.
The company is the result of a tie-up between Jollibee Foods Corp. owner Tony Tan Caktiong and Mang Inasal founder Edgar Sia 2nd.
“The initial opening was much higher than we expected because we want stability and we want the price to be stable and to continue the uptrend in the long term,” BDO Capital and Investments Corp. president Eduardo Francisco told reporters on the sidelines of DoubleDragon’s listing ceremony.
Francisco said DoubleDragon’s initial public offering (IPO) was more than 15 times oversubscribed.
BDO Capital, together with Unicapial Inc. and RCBC Capital Corp. facilitated the IPO, which sold 579.7 million common shares at P2 each.
After the market recess, DoubleDragon’s shares were already trading 35 percent higher at P2.70 per share. The stock closed at P3 per share, 50 percent higher than its offer price. It was also the most traded stock on Monday. Francisco advised investors to hold on to their shares, saying there is still room for the stock to go up further.
“We think it has good value but we encourage people who have shares to hold it. The price will improve throughout the next 12-24 months as the projects come on stream,” he said.
Sia, DoubleDragon’s chairman and chief executive officer, said the company hopes to exceed the expectations of investors, adding that they are planning to tap both the debt and equity markets for further fund-raising activities.
“We will work on it after the IPO. Next week, we start planning for more fundraising options. Definitely we will be tapping the market again, in what way we don’t know yet,” Sia said.
DoubleDragon earlier said that proceeds from the IPO will be used to finance the development of its first five commercial developments under the shopping mall name of CityMalls. The rest will go to its land banking activities and for general working capital purposes.
“The company has undertaken preliminary activities and has targeted areas in Manila, Iloilo, Zamboanga, Quezon City, and Roxas City, all in commercial areas, for its intended acquisitions, which approximately cost P200 million, P100 million, P100 million, P200 million, and P100 million, respectively,” the company said in its IPO prospectus.