Double Dragon (DD) reaches price ceiling on 1st trading day



Investors who participated in the Initial Public Offering (IPO) of Double Dragon Properties enjoyed a 50% paper gain in just one day, after the stock closed at P3.00 during its first trading day in the Philippine Stock Exchange.

50% paper gain in 1 day

The property development firm of Mang Inasal owner Edgar Injap Sia II and Jollibee founder Tony Tan Caktiong issued 579.73 million shares to the public priced at P2.00 per share during its offer period. This translates to a market capitalization of P4.46 billion for the company.

Double Dragon Properties, using stock code “DD”, opened at P2.40 — already a 20% increase from its offer price. The stock hit P3.00 later in the afternoon and also closed at that price.

At P3.00, the stock already reached its price ceiling and cannot be traded up anymore that day.

Price Ceiling and Price Limit Policy

The Philippine Stock Exchange (PSE) has a Trading Band policy that limits the maximum price increase and decrease of a stock per day. The price ceiling is 50%, which means stocks cannot be traded up further if the stock price has reached this point, similar to the case of DD yesterday.

The price limit, meanwhile, is 40% which means a stock cannot decline by more than 40% per day.

The price ceiling and price limit policy is instituted by the PSE to protect investors from wild fluctuations in stock prices.

Double Dragon IPO Details

DD is the first company to conduct an IPO this year. The offer was said to be 14 times oversubscribed, a sign of healthy demand for the stock.

(See also: DoubleDragon IPO offer 14 times oversubscribed)

The issuance of shares would lead to a 26% public float, but majority control is still owned by Sia and Caktiong.

Double Dragon envisions to be one of the largest commercial and residential property developers in the Philippines by 2020. It owns 66% of CityMall Commercial Centers, Inc. (CMCI), while the remaining 34% is owned by SM Investments Corp. (SM).

DD raised as much as P1.16 billion from the offer, bulk of which will be used to develop CityMalls, branded community mall chain, nationwide initially focusing in the Visayas and Mindanao.

The company plans to roll out the first 5 CityMalls within 2014 and the next 20 by 2015.

More stories about IPOs!

About the Author

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.

1 thought on “Double Dragon (DD) reaches price ceiling on 1st trading day”

Leave a Comment