Double Dragon (DD) IPO: 14 times oversubscribed

James Ryan Jonas

According to the Chairman and CEO of Double Dragon Properties, the first company to conduct an Initial Public Offering (IPO) this year, the company’s IPO offer was 14 times oversubscribed, a sign that there may be healthy demand for the stock.

“We are grateful for the support at 14x (oversubscription to base offer),” said Edgar Injap Sia II, head of Double Dragon Properties Corp. in an interview with the Philippine Daily Inquirer.

Sia made the comment after the company completed the bookbuilding process which ran from March 17 to 20.

IPO Price and Offer Details

Double Dragon (DD) also announced that the share’s final offer price has been pegged at P2.00, the maximum price originally indicated by the company.

Double Dragon is expected to raise as much as P1.16 billion by selling 579.73 million common shares, leading to a public float of 26% after the IPO.  At a P2.00 offer price, the company’s market capitalization is estimated at P4.46 billion.

Shares will be offered to the public during the offer period which will run from March 25 to April 1.

The stock will then be listed and will start trading on the Philippine Stock Exchange (PSE) starting April 7 using the stock ticker “DD”.

Company Profile

DoubleDragon Properties was initially called Injap Land Corp. and was wholly owned by Sia, founder of the Mang Inasal chain of restaurants. Ton Tan Caktiong of Jollibee Foods Corp. (JFC) later acquired 50% of the company through his HoneyStar Holdings Corp. The 50-50 real estate joint venture between Sia and Caktiong paved the way for the company to be renamed DoubleDragon Properties Corp.

The company envisions to be one of the largest commercial and residential property developers in the Philippines by 2020. Double Dragon Properties owns 66% of  CityMall Commercial Centers, Inc. (CMCI), while the remaining 34% is owned by mall tycoon Henry Sy’s conglomerate SM Investments Corp. (SM).

CMCI aims to build CityMalls, branded community mall chains, primarily on the high-growth areas of Visayas and Mindanao region. The company plans to roll out the first 5 CityMalls within 2014 and the next 20 by 2015. The company will spend majority of the IPO proceeds in developing CityMalls and other real estate development projects in Metro Manila, Visayas and Mindanao.

Special Report on DD IPO

PinoyInvestor, a stock resource for Filipino investors, has issued a Special Report on the IPO of Double Dragon Properties, which contains a comprehensive analysis of Double Dragon Properties Corp. and recommendation on the stock.

The special report compiles the researches of three (3) of PinoyInvestor’s expert partner brokers — Angping & Associates Securities, Unicapital Securities, and DA Market Securities containing the following:

  • analyses of Double Dragon’s growth prospects and business risks;
  • recommendation on the company’s IPO offer; and
  • estimated fair value of DD’s stock.

This Special Report is available for download to Premium Access members of PinoyInvestor.

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James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.