MANILA -- The first initial public offering on the Philippine stock market for 2014 had a very good first day of trading. This is a sign of confidence not only in the company, but also the local market.
Shares of Double Dragon Properties opened Monday at 2.00 pesos, and closed the day at 3.00 pesos. It sold 579.73 million shares, raising 1.16 billion pesos in fresh capital. This puts its market capitalization at 4.45 billion pesos ($99.14 million).
The Philippine Stock Exchange index ended the day up 0.81% at 6,614.40.
Double Dragon plans to use bulk of the proceeds of its listing to build 100 community shopping centers it calls CityMalls by 2020.
"The company benefited from the improved prospects for the market and the background of the management," said Astro C. del Castillo, managing director at Manila-based First Grade Finance.
"It was also a case of supply and demand, as well as timing," del Castillo said. "There were few shares offered given the strong demand. The price also gave an upside to investors."
Double Dragon is a joint venture between Tony Tan Caktiong, the founder of homegrown fast food giant Jollibee Foods, and Edgar Sia II, the founder of Mang Inasal, a fast food chain acquired by Jollibee in 2010.
The Philippine benchmark index has grown by 12.3% from its 2013 year-end close of 5,889.83, as investors show confidence in the fastest growing economy in Southeast Asia.
Double Dragon offered a good start for other IPOs in the pipeline. "It could encourage more listings in the market given its performance," del Castillo said.
Other companies that have made IPOs and are set to list are oil and gas explorer Frontier Oil (3.2 billion pesos in proceeds), canner Century Pacific (3.3 billion pesos), and freight forwarder LBC Express (7 billion pesos).