SEC approves IPO of Tan Caktiong-led property firm

MANILA, Philippines – The Securities and Exchange Commission (SEC) on Thursday, approved the P1.16-billion initial public offering (IPO) of the property firm owned by Jollibee Foods Corporation chairman Tony Tan Caktiong and businessman Edgar “Injap” Sia II.

DoubleDragon Properties Inc. will offer 579.730 million primary shares for up to P2 per share, documents filed with the SEC showed.

The shares account for 26% of the company’s outstanding capital stock of P2.22 billion and market capitalization of up to P4.45 billion.

Offer period will be from March 25 to April 1. Listing date was tentatively set on April 7.

Proceeds from the IPO will be used to partially fund the rollout of community mall unit CityMall, and future residential, commercial and mixed-use real estate developments.

CityMall is envisioned to become one of the largest community mall chains in the Philippines with floor area of 5,000 to 1,000 square meters. Branches will be built in prime locations all over the country, mostly in the Visayas and Mindanao.

DoubleDragon aims to put up a total of 100 malls by 2020.

CityMall recently acquired 12,654 square meters of commercial land in Arnaldo Boulevard, Roxas City. At the site will rise the first of its malls, which is expected to be completed by December 2014.

DoubleDragon is also planning to complete 3 office towers in the next 6 years in different business districts in Metro Manila. These would be leased out to corporate and outsourcing tenants. It also intends to expand to residential property developments – horizontal and vertical – as well as other property-related ventures.

Last month, conglomerate SM Investments Corporation acquired a 34% interest in CityMall. – Rappler.com