The Market Monitor Minding the Nation's Business
By Riza Lozada
Listed developer DoubleDragon Properties Corp. (DD) has filed with the Securities and Exchange Commission (SEC) documents for its proposal to raise its capital stock up to P20.5 billion to support the launching of major projects this year.
DD filed registration statement and prospectus for the issuance of preferred shares for the capital raising program.DD reported said the prospectus is in relation to the local sale by way of a primary offer of 100 million cumulative non-voting, non-participating, convertible and peso-denominated perpetual preferred shares with par value of P100 per share.
DD said its board approved last November 11 a resolution, which was ratified by the stockholders in a meeting held on January 5, for the creation of perpetual preferred shares and the increase of authorized capital stock from P500 million, divided into 5 billion common shares to P20.5 billion divided into 5 billion common shares and 200 million preferred shares.
The shares will be issued out of the increased in autho-rized capital stock as described in the prospectus, DD said. DD recently disclosed its planned issuance of non-vot-ing preferred shares to fund its five-year capital expenditure to build some 100 city malls across provinces and to develop the 4.8 hectares of prime commer-cial park (DD Meridian Park) in the Bay Area in Pasay City.
With total assets jumping by 35 percent to P24.9 billion as of end-September this year, DD reported that revenues will further improve upon the roll-out of its planned 1 million square meters of leasable space for its City Malls nationwide.
The recurring revenue streams of DD came from its rental and sales of mall units, which grew as a result of the opening of five City Malls and the Dragon 8 Mall in Divisoria. The malls started to oper-ate in the third quarter of last year and contributed to the company’s net income of P589.4 million in the third quarter, which was 132 per-cent higher from a year ago. Net income for the first nine months of last year reached P1.03 billion from P485.9 mil-lion a year ago.