Philippines: DoubleDragon Gets SEC Approval for REIT IPO Offer

DoubleDragon REIT IPO

Philippine-listed property developer DoubleDragon announced Wednesday that its subsidiary, DDMP REIT Inc, has received permit to sell from the Securities and Exchange Commission (SEC) for its primary offering of 5.9 million common shares.

The offer also includes over-allotment option of up to 594 million common shares at an offer price of P2.25 per share, the company disclosed.

In accordance to its REIT plan, DDMP REIT’s timetable of the offer is expected to be as follows: Offer period is from March 10 to 16 while listing date is March 23.

DDMP REIT Inc earlier set the final offer price of its IPO at P2.25 per share. The price is set at the top end of the range due to strong demand during the book build process.

At the price of ₱2.25 per share, the Projected Dividend Yield as stated in the REIT Plan is 5.07% for FY2021 and 5.45% for FY2022.

“The DDMP basket is seen to be a compelling REIT offering since it will include the land, a premier corner lot located along the main thoroughfares of Macapagal Avenue, EDSA Extension, and Roxas Boulevard, where the first 6 completed buildings sit on. This feature is expected to be a game-changer since the value of the prime double corner 4.75-hectare block of land with titled land ownership to be held in perpetuity should keep on appreciating decade after decade, a very important inclusion for both domestic and foreign investors,” as previously said by DoubleDragon Chairman Edgar “Injap” Sia II.

“When there is underlying titled land ownership included in the REIT shares, even a hundred years from now it should keep its hard value intact. We see DDMP shares as a ‘Pamana Stock’ that even our future grandchildren will be happy to inherit,” as previously added by Sia. –