DoubleDragon lock-up expires, shares rise

Posted on April 10, 2015 09:08:00 PM [ BusinessWorld Online ]
By Daphne J. Magturo, Reporter

THE PRINCIPAL shareholders of DoubleDragon Properties Corp. are now allowed to sell their stake in the listed company after the lock-up period lapsed, with the share price already surging by as much as 448% in just a year after its initial public offering (IPO).

“[T]he Exchange received a letter from the Escrow Agent informing the Exchange that the lock-up period of the 1,650,000,000 common shares subject of the 365-day lock up requirement...will expire on April 8, 2015,” the Philippine Stock Exchange (PSE) said in a listing notice posted after trading had closed last Wednesday.

“In view thereof, the said 1,650,000,000 common shares will be eligible for trading starting on April 10, 2015, Friday,” the PSE added.

From its IPO price of P2 each on April 7, 2014, DoubleDragon shares already hit a 52-week high of P10.96 apiece, with the lifting of the lock-up further boosting the company’s liquidity.

Injap Investments, Inc. of Mang Inasal’s Edgar “Injap” J. Sia II, and Honeystar Holdings Corp. of Jollibee’s Tony Tan Caktiong, both own 36.99% of DoubleDragon.

Individually, directors Messrs. Sia and Tan Caktiong as well as Ferdinand J. Sia, Rizza Marie Joy J. Sia, William Tan Untiong, and Joseph Tanbuntiong each own 1,000 shares; while directors Gary P. Cheng and Vicente Perez, Jr. have one share each.

The 1.65 billion shares now available for trading are valued at P14.12 billion, based on Friday’s closing price of P8.56 each. On Friday, the shares rose 0.71%.

The community mall developer raised P1.16 billion from its IPO, with actual net proceeds coming in at P1.12 billion.

In its disbursement report submitted to the PSE on Feb. 3, DoubleDragon said it already spent all of the net proceeds.

The company poured P200 million in “additional investment in CityMall Commercial Centers, Inc.”; P708.76 million in “acquisition of land and pre-development works for near-term development”; and P213.61 million for general capital working purposes.

“The Company was able to fully disburse the IPO proceeds in accordance with the schedule of disbursements per Prospectus issues during the IPO,” DoubleDragon Treasurer and Chief Finance Officer Rizza Marie Joy J. Sia said in the report.

Less than seven months after its IPO, DoubleDragon raised another P7.4 billion from the issuance of seven-year fixed-rate notes to finance its community malls and other real estate projects.

The company said it is on track to open 100 CityMalls by 2020 and opened the first branch in Roxas City, Capiz last month. It already secured 20 prime properties in key provincial areas.

DoubleDragon made its debut on the local bourse’s small and medium enterprises board. It reported a 360% surge in its net income last year to P560 million, while revenues from real estate sales also soared by 134.83% to P1.2 billion.

The developer aims to hit P1 billion in net profit by 2016 and P4.8 billion by 2020, with the bulk coming from recurring rental income of the one million leasable commercial space it is building.
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