by Jenniffer B. Austria
[ manilastandardtoday.com ] January , 2011
FILINVEST Development Corp., the holding company of business tycoon Andrew Gotianun, has launched a follow-on offering that could potentially raise more than P12.7 billion in proceeds.
Filinvest Development, in a disclosure to the stock exchange, said the company will be offering up to 2.5 billion shares, with an additional 15 percent to cover allotment options.
Based on the company’s Tuesday closing price of P5.10, the offering of 2.5 billion shares will generate P12.75 billion in fresh funds excluding the exercise of the overallotment option.
The offering will involve the sale of the company shares owned by its majority shareholder ALG Holdings Corp., and will be followed by the simultaneous subscription by ALG Holdings of an equivalent number of shares to be issued by Filinvest Development.
“Total proceeds from the 2.5 billion FDC shares will be used by FDC for land and hospitality business development, increase bank capitalization, investment in the infrastructure and utilities business and debt repayment,” the company said.
With this capital-raising activity, the public float of the company will increase from 6 percent to 29.5 percent.
In line with the plan, Filinvest Development will embark on a two-week global investor roadshow starting today.