The Securities and Exchange Commission (SEC) has approved the initial public offering (IPO) of the real estate investment trust (REIT) mainly sponsored by DoubleDragon Properties Corp.
In its en banc meeting, the agency approved the registration statement of DDMP REIT Inc. for the listing of 17.82 billion common shares on the main board of the Philippine Stock Exchange. The company placed a maximum offer price at P2.25 per share, or a total of P14.7 billion in fresh funds.
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 set aside 594.24 million more shares as its 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 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 REIT rules.
DDMP intends to conduct the IPO from March 5 to 11 and list at the PSE on March 19, based on the latest timetable submitted to the SEC.
Credit Suisse (Singapore) Ltd., DBS Bank Ltd., Nomura Singapore Limited and PNB Capital and Investment Corp. 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 and Capital Corp, of the Philippines, Macquarie Capital Securities (Singapore) Pte. Ltd., Maybank Kim Eng Securities Pte. Ltd. and RCBC Capital Corp.
Credit Suisse, DBS, Nomura, CIMB, Macquarie and Maybank were picked as international bookrunners for the offer, while PNB Capital, ICCP and RCBC Capital as domestic underwriters.
The portfolio of DDMP currently includes 6 office towers with retail components within DD Meridian Park in Pasay.
The company’s leasing spaces cater to a mix of tenants, such as business process outsourcing companies of mainly Philippine Offshore Gaming Operators, government agencies and corporate locators.
As mandated by law, DDMP shall distribute at least 90 percent of its annual distributable income as dividends.
The distributable income refers to the company’s net income as adjusted for unrealized gains and losses/expenses and impairment losses and other items in accordance with internationally accepted accounting standards.
It excludes proceeds from the sale of the REIT’s assets that are reinvested in the REIT within 1 year from the date of the sale.
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