Filinvest Development Corp. (PSE: FDC) has started its roadshow for its “top-up” equity offering. From Manila, FDC Management will go on a six-city tour covering Singapore, Hong Kong, London, New York, Boston and San Francisco.
As previously disclosed, FDC will do a top-up offering where the Gotianun family holding company, ALG Holdings Corp., will sell 2.5 billion FDC shares to the public and then subscribe the same number of shares at the same price in FDC. 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.
Aside from the 2.5 billion shares, an over allotment or “greenshoe” option of 375 million secondary shares or up to 15 percent will be sold to the public.
In a statement, Josephine Gotianun Yap, President and CEO, FDC, said that the base offering of 2.5 billion shares is intended to put FDC and its subsidiaries in a good position to take advantage of opportunities from the robust growth that it expects the country to have in the next few years.
The transaction, which will increase the public float of FDC shares from 6% to 29.5%, is expected to be completed by the end of this month.
ALG Holdings disclosed to FDC that it has consolidated its ownership of FDC shares after acquiring on 28 December 2010, via a cross sale transaction at market price of P5.10 per share, an additional 1.09 billion FDC shares from related entities.
The acquisition has not resulted in any change in the ownership and control of the Gotianun family in FDC, being a mere sale of shareholdings from one family company to another family company.
UBS AG is acting as Sole Global Coordinator and Joint Bookrunner while JP Morgan Securities Ltd is acting as Joint Bookrunner for the offering.
Filinvest Development Corp. (FDC) is one of the Philippines’ leading conglomerates, with interests in real estate development, financial and banking services, the sugar business and hospitality.