FDC raises P8B from maiden preferred share offer
FILE PHOTO
MANILA, Philippines — Filinvest Development Corp. (FDC) raised P8 billion from its first preferred share offer as it embarks on the expansion of its business units.
FDC said on Friday the preferred shares were listed on the main board of the Philippine Stock Exchange under the trading symbols “FDCPA” and “FDCPB.”
These will carry an initial dividend rate of 6.6253 percent and 7.1087 percent per year, respectively.
Proceeds will be used to refinance existing debt and “support key growth initiatives,” particularly in FDC’s real estate, consumer banking, hospitality and power generation units.
READ: Filinvest plans P24-B capex for 2025
“Our successful maiden preferred shares issuance marks a historic milestone in our corporate history and demonstrates investor confidence in FDC’s vision and our commitment to sustainable growth,” FDC president and CEO Rhoda Huang said in a statement.
BPI Capital Corp. was the sole issue manager for the offer, while BDO Capital and Investment Corp., China Bank Capital Corp., Land Bank of the Philippines and Security Bank Capital Investment Corp. were the joint lead underwriters and bookrunners.
Holders of preferred shares are not given voting rights, although they are prioritized during dividend payouts.
Strong first-quarter results
The Gotianun-led conglomerate booked a strong first quarter, with earnings surging by 25 percent to P3.6 billion.
Total revenues during the period rose by 11 percent to P29.3 billion, driven by double-digit growth across nearly all its business units.
The company plans to spend P24 billion this year. This represents a 20-percent increase from their spending last year, mainly to bankroll the expansion of its business units.
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Of the total, P11.28 billion will go to the expansion of Filinvest Land Inc. and Filinvest Alabang. Meanwhile, P9.6 billion will be spent on FDC’s other segments.
The remaining P3.12 billion is set aside for its digitalization efforts and “investments into the shared services of the organization.”
/rwd
