The Securities and Exchange Commission (SEC) has given the green light for DoubleDragon Properties Corp. to proceed with the P14.7-billion initial public offering (IPO) of its real estate investment trust (REIT) scheduled in March.
In an emailed statement on Wednesday, the corporate regulator said its Commission En Banc approved on February 16 the proposed REIT IPO of 17.827 billion common shares on the main board of the Philippines Stock Exchange (PSE).
DDMP REIT Inc. will offer as much as 5.942 billion common shares currently owned by DoubleDragon, Benedict Yujuico, and Teresita Yujuico, with an overallotment option of up to 594.248 million at a maximum offer price of P2.25 apiece.
Should the overallotment option be exercised, new investors will cover 36.67% of the issued and outstanding common shares of DDMP, DoubleDragon will retain its 44.33% stake, while the Yujuicos will continue to own a collective 19%.
Based on the timetable submitted to the SEC, the offer period has been set at March 5 to 11, with the debut on the local bourse scheduled on March 19, making it the second REIT to be listed so far after Ayala Group's AREIT Inc.
Credit Suisse (Singapore) Limited, DBS Bank Ltd., Nomura Singapore Limited, and PNB Capital and Investment Corporation will act as joint global coordinators for the REIT offering, and will concurrently serve as joint bookrunners along with CIMB Investment Bank Bhd., Investment & Capital Corp. of the Philippines (ICCP), Macquarie Capital Securities (Singapore) Pte. Limited, Maybank Kim Eng Securities Pte. Ltd., and RCBC Capital Corp.
DDMP also tapped Credit Suisse, DBS, Nomura, CIMB, Macquarie, and Maybank as international bookrunners, and PNB Capital, ICCP, and RCBC Capital as domestic underwriters.
The portfolio of DDMP currently covers six office towers with retail components within the DD Meridian Park in Pasay City, with its leasing spaces catering to a mix of tenants such as business process outsourcing companies, government agencies, and corporate locators.
As mandated by the law, DDMP will distribute at least 90% of its annual distributable income as dividends. This refers to the company's net income as adjusted for unrealized gains and losses or expenses and impairment losses, excluding proceeds from the sale of assets that reinvested within a year from the date of sale.
Aside from DD Meridian Park, DoubleDragon's core projects include CityMall, Jollibee Tower, The SkySuites Tower, Dragon8 Mall, and W.H Taft Residences. It also has several projects in Iloilo such as as the Injap Tower, The Uptown Place, People's Condominium, FirstHomes Subdivision, and HappyHomes - Mandurriao.
Shares in DoubleDragon opened Wednesday at P14.62 apiece, up from Tuesday's finish of P14.50 apiece.—AOL, GMA News