Property developer Double Dragon Properties Inc., a joint venture of Injap Sia II of Mang Inasal and Tony Tan Caktiong of Jollibee, has recently started an offering of up to 10 Billion Pesos worth of preferred shares, with an annual dividend rate of 6.4778%
While news has it that the offering is already oversubscribed (with 26 Billion Pesos worth of demand), the offering will go on until April 7, 2016. As to how the underwriters will handle the distribution of shares (whether first come first serve, raffle or partial allocation), I still need to check the prospectus (or wait for further announcement).
Lead underwriters are BPI Capital and RCBC Capital, while co-lead managers are Abacus Capital and Investment Corp., BDO Capital Corp., PNB Capital Corp., UCPB Group, and Unicaptial Inc. Co-managers are AB Capital and ATR Kim Eng/Maybank Philippines Group. So if you're interested, you may contact any of the firms mentioned.
The preferred shares are offered at 100 Pesos each. Minimum investment is 50,000 Pesos, with increment of 10,000 Pesos thereafter.
So what makes this preferred shares special? Once purchased, you have the option to convert it to Double Dragon common shares (DD) at a rate of one preffered share to one common share at anytime starting from the second anniversary up to the fifth anniversary of the issuance. This means that aside from receiving the annual 6.4778% dividend, if the stock price of DD goes above 100 (e.g., 120), you have the option to sell it and instantly earn 20% from your investment. If the price of DD doesn't go up to 100, no need to worry since you can still receive the guaranteed dividend.
Based on yesterday's close, Double Dragon is trading at 38.15 Pesos per share. For it to reach 100 Pesos, it needs to gain 162% in 2 years. Sounds impossible? Do you know that when DD was first listed in the Philippine Stock Exchange last April 7, 2014, the IPO price was 2 Pesos per share only? You read it right. That's 1807% gain in just 2 years! :)
For those looking for long term investment with a decent dividend rate, this is definitely something you can consider.
Stock Watch
While news has it that the offering is already oversubscribed (with 26 Billion Pesos worth of demand), the offering will go on until April 7, 2016. As to how the underwriters will handle the distribution of shares (whether first come first serve, raffle or partial allocation), I still need to check the prospectus (or wait for further announcement).
Lead underwriters are BPI Capital and RCBC Capital, while co-lead managers are Abacus Capital and Investment Corp., BDO Capital Corp., PNB Capital Corp., UCPB Group, and Unicaptial Inc. Co-managers are AB Capital and ATR Kim Eng/Maybank Philippines Group. So if you're interested, you may contact any of the firms mentioned.
The preferred shares are offered at 100 Pesos each. Minimum investment is 50,000 Pesos, with increment of 10,000 Pesos thereafter.
So what makes this preferred shares special? Once purchased, you have the option to convert it to Double Dragon common shares (DD) at a rate of one preffered share to one common share at anytime starting from the second anniversary up to the fifth anniversary of the issuance. This means that aside from receiving the annual 6.4778% dividend, if the stock price of DD goes above 100 (e.g., 120), you have the option to sell it and instantly earn 20% from your investment. If the price of DD doesn't go up to 100, no need to worry since you can still receive the guaranteed dividend.
Based on yesterday's close, Double Dragon is trading at 38.15 Pesos per share. For it to reach 100 Pesos, it needs to gain 162% in 2 years. Sounds impossible? Do you know that when DD was first listed in the Philippine Stock Exchange last April 7, 2014, the IPO price was 2 Pesos per share only? You read it right. That's 1807% gain in just 2 years! :)
For those looking for long term investment with a decent dividend rate, this is definitely something you can consider.
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