DoubleDragon Properties Corp. plans to raise up to P7.5 billion through a share sale.
DoubleDragon said in disclosure to the stock exchange it also revised upwards its 2020 vision by targeting 1.2 million of leasable space from an initial goal of 1 million square meters and net income of P5.5 billion from P4.8 billion.
DoubleDragon said its board approved the sale of up to P7.5 billion or 150 million common shares through a follow on-offering, a move that will improve the liquidity of the stock and enhance its balance sheet with higher equity levels.
“This planned follow-on offering will be very timely because for the past two years, the company has been very active in numerous international roadshows and conferences, and we have met with over 300 institutional investors across the world. The planned offering will provide them the opportunity to secure a position in DoubleDragon during its high growth years,” said Hannah Yulo, DoubleDragon chief investment officer.
The property firm is undertaking such move as it aims to become one of the blue chip stocks in the bellwether Philippine Stock Exchange Index in the near term.
“Steady trading activity in the stock is one of the important criteria in its inclusion in the PSEi and the company believes that a follow-on offering will not only increase trading volumes in the stock but will also allow the entry of a good base of institutional investors to further strengthen the position of DD in the international investment community,” DoubleDragon said.
Meanwhile, DoubleDragon is now targeting to have 1.2 million sq. m. of leasable space by 2020 as the company ventures into industrial leading and hotel development.
The newly formed Central Hub Industrial Centers Inc. plans to develop 100,000 sq. m. of industrial leasing space and another 100,000 sq. m. from hospitality and hotels through Hotel 101 and Jinjiang Inn brands.
The increase in leasable space is expected to improve the company’s 2020 net income target to P5.5 billion from the previously announced P4.8 billion.
“We are glad that DoubleDragon now has 4 strong legs in various property spectrums namely commercial retail leasing, office leasing, industrial leasing, and hospitality, which will provide the company with a diversified source of recurring revenues backed by a string of appreciating hard assets,” DoubleDragon chairman Edgar “Injap” Sia II.
Central Hub is envisioned to be a branded standardized multi-use warehouse chain suited for commissaries, cold storage and logistic centers.
DoubleDragon said it intends to dominate the branded industrial
leasing industry in the near term through the development of Central Hubs in North Luzon, South Luzon, Visayas and Mindanao.
The Central Hub chain will contain standardized multi-use warehouses suited for commissaries, cold storage and logistic centers, some of which will be built to the specifications for large commissary, cold storage and logistics locaters.