Double Dragon IPO could be first IPO in 2014

by

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.

Read these other relevant, related, useful posts!

About the Author

James Ryan Jonas teaches business strategy, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.1 Billion ($56 Million) worth of retirement funds on behalf of thousands of UP employees.

PSEi support seen at 6,200 and 6,000 amid weaker Peso

In a not-so-surprising move, the U.S. Federal Reserve (Fed) yesterday raised interest rates by 75 basis points (bps) or 0.75% in a bid to tame rising inflation in the United States. This was the third consecutive 0.75% rate hike by the Fed, which brings the federal funds rate, the central bank’s benchmark interest rate, to ... Read more

Official SWIFT Code of BDO, BPI, Metrobank, Philippine banks

When sending cash remittances or wire transfer to a bank account in the Philippines (such as BDO, BPI, Metrobank, Landbank, DBP, etc.), you’ll surely need the SWIFT Code of the bank. Look no further because you can find all the SWIFT Codes you need in this list! Make sure you’re using the right bank code ... Read more
blank

How to Waive your Credit Card Annual Fee (BDO, BPI, Metrobank, RCBC, Citibank, UnionBank)

Without a doubt, one of the most annoying fees that credit cardholders have to pay is the annual fee. Majority of cardholders are familiar with this fee and majority of us likely pay this grudgingly year after year after year. In the case of my credit card with BPI (Bank of the Philippine Islands), I’m ... Read more
blank

Why Filipinos do not become business owners or entrepreneurs

For a majority of Filipinos, entrepreneurship does not seem to be a typical, expected path. This is not surprising, considering that in school, students are primarily taught to become employees after graduation. Students train for years to become staff workers, reporting to a supervisor, and just waiting to receive their wages or salaries every month. ... Read more
blank

My experience investing in Mutual Funds in the Philippines

I started investing in mutual funds when I was 22 years old. As an Overseas Filipino Worker (OFW) then, I was fortunate to be able to save some money at that young age because of my work abroad. One time while I was on vacation in the Philippines, I saw a large billboard in EDSA ... Read more
blank

Income Tax Tables in the Philippines (2022)

The Philippines’ new tax reform bill, known as TRAIN or Tax Reform for Acceleration and Inclusion, was signed into law on December 19, 2017 and its implementation began on January 1, 2018. What are the new income tax rates under the TRAIN law? How will TRAIN affect income taxes of individuals and corporations? How is the ... Read more
blank

PSE Stocks Performance under each Philippine President (1987-2021)

Did you know that Philippine stocks were able to achieve an astounding growth of 800% in a span of 30 years? From 1987 until 2018, the Philippine Stock Exchange index (PSEi) rose from 1,000 points to a peak of 9,000 points — generating a return of 800% over 30 years. (The PSEi is an index ... Read more
blank

SSL 2022: Salary Increases for Teachers, Nurses, Gov’t Employees

Good news to all government employees! There’s a new round of salary increases beginning January 1, 2022! Millions of employees of the Philippine government — including public school teachers, nurses and staff of government hospitals, and workers in local and national government agencies, etc. — will be getting an automatic salary adjustment this 2022 under ... Read more
blank

PSE Trading Hours in 2022: What time open, when closed?

Before you take the plunge into stock trading and investing, make sure you understand what stocks are and how the Philippine Stock Exchange (PSE) operates. Unlike other investments that are relatively safe, stock trading is risky and loss of money is a possibility. So before you deep dive into the exciting world of stock trading, ... Read more

Price Floor and Price Ceiling of PSE Stocks

Trading bands in the PSE come in two forms: Price Ceiling, or the upper price limit, and Price Floor, or the lower price limit.

2 thoughts on “Double Dragon IPO could be first IPO in 2014”

  2. I had been afraid to dive into php, but gave it a shot after reading this. Never ever really love WordPress’ comment system. Many thanks for that tips to get me started off.

    Reply

Leave a Comment

Pinoy Money Talk

We are a money-oriented website in the Philippines focusing on the stock market, banking, entrepreneurship, and investment opportunities.

Follow Us on fb

© 2022 Pinoy Money Talk

About Terms of Service & Privacy Policy