The Securities and Exchange Commission on Monday approved the P10-billion preferred shares offering of DoubleDragon Properties Corp.
SEC commissioner Ephyro Luis Amatong said DoubleDragon’s preferred shares offering was the fifth equity deal approved by the corporate regulator since the start of the year.
Amatong said this was also the first time the SEC approved five equity deals in a span of three months.
He attributed the increase in capital market transactions to the robust domestic economy and the move of SEC to extend to 180 days from 120 days the validity of the financial statements of companies registering stocks for public offering.
Documents filed with the SEC showed DoubleDragon would issue as much as 100 million preferred shares at an issue price of P100 per share, worth 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 apiece.
Proceeds from the offering will be used to finance the company’s real estate projects, including the rollout of community malls across the country, the construction of mixed-use development DD-Medrian Park in Pasay City, Jollibee Tower in Ortigas Center and the completion of residential and office development The Sky Suites Tower in Quezon City.
RCBC Capital Corp. and BPI Capital Corp. are the underwriters for the transaction.
DoubleDragon, a 50-50 joint venture of Injap Investments Inc. led by businessman Edgar Sia II and Jollibee Foods Corp. chairman Tony Tan Caktiong, aims to be one of the five largest property companies in the Philippines by 2020 by building up 1 million square meters of leasable space.
The preferred shares offering is the first equity deal to be conducted by DoubleDragon after it was listed under the SME board of the PSE in April 2014.
DoubleDragon was transferred from the SME board to the main board of PSE in July 2015.
Share price of DoubleDragon dropped 0.1 percent on Monday to close at P39.45.