• DoubleDragon to raise P10B from shares offer

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    NEWLY listed DoubleDragon Properties Corp., the property joint venture of founders of homegrown food chains Jollibee and Mang Inasal, said it will seek to raise up to P10 billion from a preferred shares offer to finance the company’s development projects.

    In a disclosure to the Philippine Stock Exchange on Friday, DoubleDragon said it will offer to the public 100 million preferred shares at a par value of P100 per share.

    There will be a primary offer of 50 million shares for P5 billion, and a foreseen over-subscription of an additional 50 million shares, for a total of P10 billion.

    The proceeds are expected to finance DoubleDragon’s ongoing projects, such as CityMall community malls, the Meridian Park near the SM Mall of Asia in Pasay City, the Jollibee Tower at the Ortigas Center and The Sky Suits Tower in Quezon City.

    The property developer plans to offer the hares on March 4 to 10 this year, with PI Capital Corp. and RCBC Capital Corp. as underwriters.

    The shares will be listed on the local bourse on March 17.

    Preferred shares do not carry voting rights, except as otherwise provided by law. The issue will be non-participatory and enjoys a cumulative dividend policy pegged at the average for seven-year PDST-R2 rate for three consecutive days preceding the pricing date of March 2, plus a premium.

    DoubleDragon said the dividend, unless redeemed, will have a step-up rate on its 7th anniversary from listing day, based on the initial rate or the rate of the 10-year PDST-R2 plus its step-up spread, whichever is higher.

    However, the company said it reserves the right to redeem the shares as a whole on the fifth anniversary of the listing date or on any dividend payment date thereafter.

    The preferred shareholders will also be entitled to convert their stock to common shares at a ratio of 1:1, beginning on the second anniversary of the listing date.

    Earlier, DoubleDragon chairman Edgar Sia 2nd said the company is committed to completing 1 million square meters of leasable space by 2020, with ongoing projects that are in the various stages of development.

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