Filinvest hikes capital to P17 billion

MANILA, Philippines - Filinvest Development Corp. (FDC), the investment holding firm of the Gotianun family, is raising its capital stock to P17 billion from P10 billion through an equity fund-raising program.

In its disclosure to the Philippine Stock Exchange, FDC said the new capitalization will comprise five billion common shares and two billion preferred shares, all with a par value of P1 per share.

The equity-raising transaction will be implemented in two concurrent stages, the first of which is the offer and sale by the family-owned ALG Holdings Corp. of its existing shares not exceeding three billion shares in FDC.

The next stage involves the subscription by ALGHC and the issuance by FDC to ALGHC of new common shares at most in the same number as the shares sold during the offer with such new common shares being listed as soon as practicable.

These transactions will be submitted for approval by FDC stockholders during a special meeting scheduled on Nov. 25.

FDC posted a net income of P1.38 billion in the first half this year, more than double the P585 million recorded in the same period last year.

Net revenues rose of 42.8 percent to P6.07 billion from P4.25 billion a year ago due to the strong growth of its financial services and real estate businesses.

Revenues from real estate operations amounted to P2.4 billion, up 17.9 percent from P2.07 billion. Sale of lots, condominium and residential units, and club shares increased 50 percent to P2.62 billion, bulk of which came from properly-Filinvest Land Inc.’s medium-rise buildings.

The Filinvest Group has been in the residential business for over 45 years and has developed over 2,000 hectares of raw land into homes for more than 110,000 families, as well as over 600,000 square meters of office/retail and high-rise residential space.

Its newest product line –medium rise buildings (MRBs) — continued to generate robust sales for the company. These are inner city projects with several five-story buildings clustered around the project’s central amenity area.

Currently, FLI’s MRB projects include One Oasis Ortigas, Bali Oasis, Sorrento Oasis, and Capri Oasis, all in Pasig City, as well as Maui Oasis in Sta. Mesa, Manila. The company also has One Oasis projects in Cebu City and Davao City.