Gotianun-led Filinvest Development Corp. (FDC) is launching an P8 billion preferred share offering to support its strategic expansion and strengthen its financial position.
FDC said in a disclosure to the stock exchange it has filed a registration statement with the Securities and Exchange Commission and a listing application with the Philippine Stock Exchange for up to 8 million preferred shares priced at P1,000 each.
The offer includes a base of 6 million shares and an oversubscription option of 2 million shares.
FDC said the proceeds will be used to refinance existing obligations and fund growth initiatives.
These include investments in residential real estate, consumer banking, hospitality, and power.
“We are positioning Filinvest for the next phase of sustainable growth by strengthening our capital structure and enhancing financial flexibility,” said FDC president and chief executive Rhoda Huang.
The offering is part of the company’s broader strategy to diversify its funding sources and attract more investors.
This is also aligned 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.
The offer period is scheduled for July 21 to 25, with the listing targeted for Aug. 4, subject to regulatory approvals.
Approximately P5 billion to P6.75 billion in net proceeds from the preferred shares offering, including in the event the oversubscription option is exercised will be used to partially liquidate the term loan with local banks totaling P9.65 billion.
The remaining P893 million to P1.183 billion will be used for capital expenditures and general corporate purposes.
FDC engaged BPI Capital Corp as the sole issue manager for the deal. BPI Capital together with BDO Capital & Investment Corp., China Bank Capital Corp., Land Bank of the Philippines, and Security Bank Capital Investment Corp. are the joint lead underwriters and bookrunners.
The conglomerate posted a net income of P3.6 billion in the first quarter of the year, a 25 percent increase from the same period last year, with all its business units recording double-digit improvements.
