DoubleDragon Properties Corp. is pushing through with the planned P10-billion preferred share offering in March, despite current volatile market condition.
The company said in its latest filing with the Securities and Exchange Commission dated Feb. 13 it would keep the timetable for the planned fund raising activity.
Under the plan, Doubledragon hopes to secure SEC’s pre-effective approval on Feb. 26, after which it will set the final dividend rate for preferred shares on Feb. 26.
The offering period is tentatively set on March 4 to 10.
The company plans to use proceeds from the offering to finance real estate projects, including the rollout of community malls across the country,construction of mixed-use development DD-Medrian Park in Pasay City, Jollibee Tower in Ortigas Center and completion of residential and office development The Sky Suites Tower in Quezon City.
Doubledragon plans to issue as much as 100 million worth of preferred shares at P100 per share, or for a total of P10 billion.
The preferred shares will come from the proposed increase in the company’s authorized capital stock to P20.5 billion, consisting of 5 billion common shares with a par value of P0.10 per share and the creation of 200 million non-voting preferred shares with a par value of P100 per share.
DoubleDragon said proceeds from the offering would initially be placed in escrow, while waiting for the SEC to approve capital hike.
“Once the application for the amendment is approved by the SEC, the proceeds will be released to the company and net proceeds will be used to finance the development of any of the company’s real estate projects,” DoubleDragon said.
RCBC Capital Corp. and BPI Capital Corp. would serve as underwriters for the transaction.
DoubleDragon, a 50:50 joint venture between Injap Investments Inc. of businessman Edgar “Injap” Sia II and Jollibee Foods Corp’s chairman Tony Tan Caktiong, aims to be one of the five largest property companies by 2020.