Double Dragon IPO could be first IPO in 2014
A property development firm jointly owned by Jollibee Foods Corp.’s CEO Tony Tan Caktiong and Mang Inasal’s owner Edgar Injap Sia could be the first initial public offering (IPO) in the Philippine Stock Exchange (PSE) this year.
The company, DoubleDragon Properties Corp., filed an IPO application with the Securities and Exchange Commission on January 31, hoping to raise more than P1.16 billion from the transaction.
Shares Offered and IPO Price
Double Dragon plan to issue up to 579.73 million shares to the public, accounting for more than 26% of the company’s outstanding capital stock.
There is no final price yet, but the indicative IPO price is P2.00 per share.
Assuming the maximum share offering size and indicative price, this translates to a market capitalization of P4.46 billion for Double Dragon Properties.
Usage of IPO Proceeds
The company intends to use the P1.16 billion proceeds from the transaction to expand its portfolio of real estate developments. In particular, it plans to roll out a chain of community malls to be called CityMall.
Double Dragon wants CityMall to be one of the largest independent community mall chains in the country, although initial plans show CityMall’s first locations will mostly be in the Visayas and Mindanao.
The company expects to build and operate at least 100 CityMall outlets nationwide by 2020, and envisions Double Dragon Properties to be one of the Philippines’ top 10 real estate companies within the next six years.
Double Dragon recently acquired more than 12,645 sq. m. of commercial land in Arnaldo Boulevard in Roxas City. The location is expected to be the site of the first CityMall that will be built.
Apart from the CityMall project, the company will also use proceeds of the IPO to develop residential and office real estate projects. It plans to build three office towers in central business districts in Metro Manila, to be offered for lease primarily to Business Process Outsourcing (BPO) locators.
DoubleDragon Properties Company Profile
DoubleDragon Properties was initially called Injap Land Corp., wholly owned by Mang Inasal’s Edgar Sia.
Jollibee’s Tan Caktiong later acquired 50% of the company through his HoneyStar Holdings Corp. It then became a 50-50 joint venture between Injap Investments Inc. and Honeystar Holdings Corp. and was since renamed to DoubleDragon.
In 2013, the company recorded a net income of P126.6 million.
DoubleDragon Properties is the second joint venture between Sia and Tan Caktiong. In October 2010, Jollibee acquired Sia’s Mang Inasal restaurants for P3 billion. (See also: Jollibee acquires Mang Inasal for P3 billion)
Sia retained 30% of the company while Jollibee owns the majority 70% of Mang Inasal.
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