MANILA, Philippines - The property firm of Mang Inasal founder Edgar “Injap” Sia II and Jollibee Foods owner Tony Tan Caktiong has moved closer to becoming the first company to go public this year.
In an en banc decision, the Securities and Exchange Commission (SEC) approved the registration statement of DoubleDragon Properties Corp. The board of directors of the Philippine Stock Exchange (PSE) has earlier approved the company’s listing application.
The corporate regulator said DoubleDragon plans to sell 579.73 million primary shares at a maximum price of P2 apiece, allowing the company to raise P1.15 billion.
“The total proceeds (net of cost) with amount of P1.03 billion will be used for the roll-out and development of the first five CityMalls, acquisition of land and pre-development works for near-term development, and general working capital purposes,” the SEC said.
Offer period will run from March 26 to April 1, followed by its listing at the PSE on April 7. Lead underwriters are Unicapital Inc. and RCBC Capital Corp.
DoubleDragon’s subsidiary, CityMall Commercial Centers Inc. (CCCI), is aiming to become one of the largest independent branded community mall chain in the country. It plans to build 100 City Mall branches nationwide with floor areas of 5,000-10,000 square meters (sqm) each, mostly in the Visayas and Mindanao.
The property firm said it will partner with major retail brands such as SaveMore, Robinsons, Puregold, Wellcome and Super 8 for the supermarket segment in City Malls.
Last month, mall and banking conglomerate SM Investments Corp. acquired 34 percent in CCCI. DoubleDragon retained a majority 66-percent stake and the management control.
“Other than the City Mall chain, DoubleDragon also intends to complete three office towers in the next six years in different central business districts in Metro Manila,” the firm said. The office space will be leased out to corporate and business process outsourcing companies.
Five years into operations, DoubleDragon already sold out and completed the People’s Condominium, the first condominium project in Iloilo, and the 111-unit First Homes Village, also in Iloilo. In 2013, DoubleDragon’s net earnings jumped 32 percent to P126.63 million from P92.48 million a year ago.
The property firm has two ongoing vertical residential projects with commercial components in Iloilo. Its first foray in Metro Manila is the 30-story W.H. Taft Residences beside De La Salle University.
DoubleDragon was initially created as Injap Land Corp., the real estate arm of Injap Investments Inc., in 2009. In July 2012, it was renamed DoubleDragon as it became a 50-50 joint venture between Injap Investments and Tan Caktiong’s Honeystar Holdings Corp.