FDC plans up to P8-B preferred share offer

FILINVEST DEVELOPMENT Corp. (FDC) plans to raise up to P8 billion via a peso-denominated perpetual preferred share offering as part of its capital-raising efforts.

In a disclosure on Wednesday, the Gotianun-led conglomerate said the Securities and Exchange Commission (SEC) issued the certificate of filing of enabling resolution for the offer on May 20.

The offer will consist of a base tranche of up to six million preferred shares, with an oversubscription option of up to two million shares.

Both will be priced at P1,000 per share, based on indicative terms.

FDC intends to issue the shares in up to two tranches: Series A preferred shares, which will be non-redeemable for two years from the issue date, and Series B preferred shares, which will be non-redeemable for five years.

The offer period is scheduled from July 21 to 25.

Proceeds from the offering will be used to refinance existing debt, fund capital expenditures, and support general corporate requirements.

BPI Capital Corp., BDO Capital & Investment Corp., China Bank Capital Corp., Land Bank of the Philippines, and Security Bank Capital Investment Corp. were tapped as joint lead underwriters and bookrunners for the issuance. BPI Capital was designated sole issue manager.

“The company will provide further updates on the offer, including the issuance of the order of effectivity and permit to sell by the SEC,” FDC said.

FDC posted a 25% increase in attributable net income to P3.6 billion for the first quarter.

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 to the expansion of its real estate projects.

On Wednesday, shares in FDC fell by 0.22% or one centavo to close at P4.53 each. — Revin Mikhael D. Ochave