First IPO for 2014 DoubleDragon soars 50% on PSE debut

The property firm jointly owned by Jollibee Foods Corp. chairman Tony Tan Caktiong and business partner Edgar “Injap” Sia II soared by 50 percent on its first day of trading Monday on the Philippine Stock Exchange.

Shares of DoubleDragon Properties Corp. gained 50 percent to P3.00 apiece from a listing price of P2 per share, according to the PSE online Market Information.

"Investors are excited, because this is the first IPO of the year coupled with optimism on the local market and strong economic fundamentals," Unicapital Securities Inc. research head Lexter Azurin told GMA News Online.

"It's an attractive company with a strong management team between Mang Inasal founder Injap and Jollibee's head Tan Caktiong," he added.

DoubleDragon raised P1.16 billion from 579.73 million IPO shares priced at P2.00 apiece.

The offer shares account for 26 percent of the company's outstanding capital stock of P2.22 billion and market capitalization of up to P4.45 billion, according to the DoubleDragon IPO prospectus.

On March 21, BDO Capital & Investment Corp. president Eduardo Francisco said the issue was 14 times oversubscribed, reflecting a strong interest in the company.

BDO Capital, Unicapital and RCBC Capital Corp. were tapped by the company as joint lead underwriters.

"As stated by BDO capital, the issuance was 14 times oversubscribed and the demand continued until today," Azurin said, noting there were still investors lining up to buy DoubleDragon shares.

DoubleDragon said proceeds from the IPO will be used to finance CityMall, a branded community mall chain that will be launched mainly in the Visayas and Mindanao.

In a statement to Philippine Stock Exchange, DoubleDragon co-chairman and CEO Sia said they are aiming to reach one million square meters of total leasable space by 2020.

"...70 percent is expected to come from the planned 100 CityMall community malls [and] 150,000 sqm. is expected to come from three office buildings... and the remaining 150,000 sqm. will come from mixed-use developments," he said.

The company is in the final stages of securing eight locations for the CityMall projects, five of which will be completed by December 2014. 

DoubleDragon said it will make an announcement this month in which towns or cities the malls would located.

Azurin said the strong performance of the newly listed company reflects the strength of the property sector even though DoubleDragon is mostly focused on the leasing business.

"The company is more on rentals and the CityMall projects seem to have guaranteed tenants, particularly from Jollibee and Mang Inasal," he said.

DoubleDragon is the second business venture of Sia and Tan Caktiong after Jollibee Foods bought a 70 percent stake in Mang Inasal for P3 billion in 2010. Sia kept a 30-percent interest in the grilled chicken restaurant chain which he founded. – VS, GMA News