GOTIANUN-LED conglomerate Filinvest Development Corp. (FDC) hopes to raise P8 billion through a preferred share offering following the filing of a registration statement with the Securities and Exchange Commission (SEC).
“We are positioning Filinvest for the next phase of sustainable growth by strengthening our capital structure and enhancing financial flexibility,” FDC President and Chief Executive Officer Rhoda A. Huang said in a statement on Tuesday.
“This preferred share offering supports our objective to deepen investments in sectors where we have strong competitive advantages and long-term value creation potential,” she added.
FDC said on Tuesday that it filed the registration statement with the SEC, along with a listing application with the Philippine Stock Exchange (PSE), for the issuance of up to 8 million preferred shares priced at P1,000 per share.
The offering will consist of a base tranche of up to 6 million preferred shares and an oversubscription option of up to 2 million preferred shares. The shares will be offered in up to two series.
Proceeds will be used to refinance existing obligations and support growth initiatives aligned with the conglomerate’s long-term investment strategy.
“This offering is a key component of the company’s capital markets engagement strategy, designed to broaden its investor base and diversify funding sources,” FDC said.
“This aligns with FDC’s strategic direction to unlock value in its core businesses while expanding in high-growth sectors such as affordable, middle-income, and high-end residential markets, consumer banking, hospitality, and power generation,” it added.
The offer period is scheduled from July 21 to July 25, with the listing on the Philippine Stock Exchange expected by Aug. 4.
FDC appointed BPI Capital Corp. as the sole issue manager. BPI Capital, together with BDO Capital & Investment Corp., China Bank Capital Corp., Land Bank of the Philippines, and Security Bank Capital Investment Corp., will serve as joint lead underwriters and bookrunners.
For the first quarter, FDC recorded a 25% increase in attributable net income to P3.6 billion. Total revenue and other income rose by 11% to P29.3 billion, driven by contributions from its banking, real estate, hospitality, and sugar businesses.
FDC has earmarked P24 billion in capital expenditures this year, with 47% allocated for the expansion of its real estate projects.
Shares of FDC were last traded on May 23, closing unchanged at P4.54 apiece. — Revin Mikhael D. Ochave
