• SEC OKs DoubleDragon P10B funding

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    THE Securities and Exchange Commission on Monday approved DoubleDragon Properties Corp.’s application to raise P10 billion through a preferred share issuance.

    DoubleDragon, the property joint venture of the founders of homegrown food chains Jollibee and Mang Inasal, said it will seek to raise up to P10 billion from a preferred share offer to finance its development projects.

    “This is the first time we have approved five fund-raising activities in the first quarter,” Ephyro Luis Amatong, SEC associate commissioner, said.

    For the first quarter alone, the SEC has approved San Miguel Corp.’s P73 billion preferred share offering, Ayala Land Inc.’s shelf registration worth P50 billion, Primark’s initial public offering which aims to raise P1 billion, and DMCI-Property Developer’s Inc.’s P500 million Homesaver bonds.

    “We attribute this [several applications]to the country’s robust economy and because of the agency’s move to extend the validity of the financial statements of the companies from 120 days to 180 days, which is required to be submitted should one opt to apply for a fund raising activity before the SEC,” Amatong said.

    Under the approved offering, 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, Meridian Park near the SM Mall of Asia in Pasay City, Jollibee Tower at the Ortigas Center and The Sky Suits Tower in Quezon City.

    The property developer has tapped BPI Capital Corp. and RCBC Capital Corp. as underwriters.

    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 the 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 various stages of development.

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