Jollibee owner's property firm sets IPO price at P2/share
MANILA, Philippines – DoubleDragon Properties Corporation, the property firm owned by Jollibee Foods Corporation chairman Tony Tan Caktiong and businessman Edgar "Injap" Sia II set the final price of its initial public offering (IPO) at the top end of its indicative price range.
Strong demand from local investors prompted the company to set its IPO price at P2 per share. This means its IPO will raise the maximum amount of P1.16 billion earlier eyed.
BDO Capital & Investment Corporation president Eduardo Francisco said the company's IPO was 14 times oversubscribed. BDO Capital is one of the underwriters for DoubleDragon's market debut.
DoubleDragon is selling 579.73 million primary shares to the public. The offer period will run until April 1. Listing date was tentatively set on April 7.
Proceeds from the IPO will be used to partially fund the rollout of community mall unit CityMall, and future residential, commercial and mixed-use real estate developments.
CityMall is envisioned to become one of the largest community mall chains in the Philippines with floor area of 5,000 to 1,000 square meters. Branches will be built in prime locations all over the country, mostly in the Visayas and Mindanao.
DoubleDragon aims to put up a total of 100 malls by 2020.
CityMall recently acquired 12,654 square meters of commercial land in Arnaldo Boulevard, Roxas City. At the site will rise the first of its malls, which is expected to be completed by December 2014.
DoubleDragon is also planning to complete 3 office towers in the next 6 years in different business districts in Metro Manila. These would be leased out to corporate and outsourcing tenants. It also intends to expand to residential property developments – horizontal and vertical – as well as other property-related ventures.
Last month, conglomerate SM Investments Corporation acquired a 34% interest in CityMall. – Rappler.com