Shares of the real estate investment trust (REIT) of DoubleDragon Properties Corp. failed to fly during its debut at the Philippine Stock Exchange (PSE), as its share price was on a downward trend almost the entire day.
Shares of DDMP Reit Inc. closed flat at P2.25 per share on its maiden trading, even if the general market was on the rise.
“Listing during a pandemic is definitely not a walk in the park, but we believe this is our share of also promoting a more inclusive economy, and that what we can achieve together now during these challenging, never-been-chartered territories, brought about by this pandemic. Despite those challenges, your DDMPR team will still continue work hard to lift the company to greater heights while further solidifying its foundation year on year,” Edgar J. Sia II said.
“I believe this DDMPR IPO [initial public offering] is probably the first of its P14.7-billion size IPO in the Philippines, that the pricing and direction was driven by the fragmented small and medium investors from across the country.”
Shares of previous IPOs of companies led by Sia, such as grocery chain operator Merry Mart Consumer Corp. and also DoubleDragon, flew on its first day of trade, and almost reached the 50-percent ceiling of increase per day allowed by the systems of the PSE.
DDMPR shares opened at P2.26 per share, but only reached as high as P2.40 before being sold down late in the trade.
The benchmark PSE index, meanwhile, was up 50.66 points to close at 6,497.01 points. Total value of shares traded reached P21.32 billion, a high number as a result of the listing, with 9.27 billion shares traded. Decliners edged gainers 98 to 90, and 64 shares were unchanged.
Included in the DDMP portfolio is the 6 office towers with retail components developed by DoubleDragon within DD Meridian Park in Pasay.
The share offerings came from the holdings of DoubleDragon, Benedict V. Yujuico and Teresita M. Yujuico.
New investors cornered 36.67 percent of the issued and outstanding common shares of DDMP. DoubleDragon will retain a 44.33-percent interest, while Benedict and Teresita will own 9.65 percent and 9.35 percent, respectively.
The selling shareholders will receive the entire proceeds, which shall be reinvested in the Philippines, pursuant to the REIT rules.
‘Another milestone’
Finance Secretary Carlos G. Dominguez III lauded DoubleDragon Properties Corp. for “bringing another milestone to the Philippine stock market” with the successful public listing of its REIT on Wednesday.
In his recorded message, Dominguez said DoubleDragon’s REIT offering is the largest issuance in the Philippines so far and the second to be listed in the country’s history, following Ayala Land Inc.’s pioneering REIT last year.
Ayala Land’s REIT raised P13.6 billion, while DoubleDragon’s offering is expected to net as much as P14.7 billion.
He recalled that while the economy remained largely on lockdown last year, DoubleDragon successfully launched the IPO of its MerryMart Consumer Corp., a retail company principally engaged in the operation of grocery stores.
The finance chief added DoubleDragon’s REIT listing as well as the previous IPOs made during the pandemic reflect the “strong confidence of our investors in our economic recovery”, adding that REITs are “indispensable to rebuilding a strong and truly inclusive economy for our people.”
“These will make available huge volumes of capital to our financial system that will help fund our long term growth.”
In keeping with this provision in the law’s implementing rules and regulations, Dominguez said that a majority of DoubleDragon’s REIT proceeds will be infused as equity into its CentralHub Industrial Centers Inc. to carry out the company’s plan to build a chain of modern industrial warehouse complexes in strategic locations across the country.
Dominguez said this infrastructure investment will help bridge the gap in the country’s logistics distribution network, encourage the expansion of manufacturing activities, create more jobs, and help fuel economic recovery.
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