SEC approves DoubleDragon’s P14.7-B REIT IPO

Published February 18, 2021, 6:00 AM

by James A. Loyola

The Securities and Exchange Commission (SEC) has approved the P14.71 billion initial public offering (IPO) of DoubleDragon Properties Corporation’s real estate investment trust (REIT).

The SEC En Banc resolved to render effective the registration statement of DDMP REIT, Inc. for 17.83 billion common shares for listing on the Main Board of the Philippine Stock Exchange (PSE), subject to the company’s compliance with the remaining requirements.

Of the total issued and outstanding shares, DDMP will offer to the public up to 5.94 billion common shares currently owned by DoubleDragon, Benedict V. Yujuico and Teresita M. Yujuico.

The selling shareholders have also set aside 594.25 million more shares as an overallotment option.

Assuming the full exercise of the overallotment option, new investors will corner 36.67 percent of the issued and outstanding common shares of DDMP.

DoubleDragon will retain a 44.33 percent interest, while the Yujuicos will continue to own 9.65 percent and 9.35 percent, respectively.

DDMP pegged the maximum offer price at P2.25 apiece for total proceeds of P14.71 billion which the will reinvest in the Philippines, pursuant to the Revised Implementing Rules and Regulations of the Real Estate Investment Trust (REIT) Act of 2009.

DDMP intends to conduct the IPO from March 5 to 11, 2021 and list on the PSE on March 19, based on the latest timetable submitted to the SEC.

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.

The global coordinators will concurrently serve as joint bookrunners, along with CIMB Investment Bank Bhd, Investment & Capital Corporation of the Philippines (ICCP), Macquarie Capital Securities (Singapore) Pte. Limited, Maybank Kim Eng Securities Pte. Ltd., and RCBC Capital Corporation.

DDMP further mandated Credit Suisse, DBS, Nomura, CIMB, Macquarie, and Maybank as international bookrunners for the offer, and PNB Capital, ICCP, and RCBC Capital as domestic underwriters.

The portfolio of DDMP currently includes six office towers with retail components within DD Meridian Park in Pasay City.

The company’s leasing spaces cater to a mix of tenants, such as business process outsourcing companies, government agencies, and corporate locators.(James A. Loyola)