Filinvest Land begins roadshow for additional shares offer

By Honey Madrilejos-Reyes

Reporter

LISTED Filinvest Land Inc. (FLI), the residential property unit of the Gotianun-controlled Filinvest Development Corp., commenced on Monday its roadshow for the follow-on offering or sale of additional shares of up to 5.4 billion to both local and foreign investors.        

Of the offering, 3.7 billion are new common shares and up to 1.7 billion secondary shares to be sold by Filinvest Alabang Inc.             

Ninety-five percent or up to 5.13 billion of the shares would be sold to international investors while the balance of five percent, consisting of about 270 million shares, would be sold to the stock exchange's trading participants.

There would also be an over-allotment option of up to 809,852,590 that the company may exercise in case of additional demand.      

FLI said the computation of the offer price would be based on the volume-weighted average trading price of the shares for 10 trading days ending on January 19, and subject to a discount of up to 10 percent. FLI's share price closed at P1.70 on Monday's trading.

A trading halt of the FLI shares begins on January 22 and lasting up to February 5. The listing of the shares and the resumption of trading would be on February 6.   

Meanwhile, the Government of Singapore Investment Corp. Pte Ltd. (GIC) said it would no longer participate in FLI's public offering. GIC previously intended to participate in the offering as a selling shareholder of up to 1,928,937,892 secondary shares.               

FLI said earlier the proceeds from the follow-on offering would be used to fund its P2.1 billion capital expenditures this year and repay a portion of its long-term debt.            

Listed at the stock exchange since October 1993, the sale of additional FLI shares and eventual listing this year is another major event in the capital market. For one, the company is considered as one of the country's leading real-estate developers, providing a wide range of real-estate products to customers from diverse income segments.      

Its projects include integrated residential township developments and stand-alone residential subdivisions, which offer lots and/or housing units to customers in the low-cost segment and in the middle-income and the high-end markets.

It has also developed "themed" housing and land development projects, such as entrepreneurial communities and the Filinvest Technology Park in Laguna. FLI also has leisure projects such as residential farm estates and private membership club developments.               

FLI has an extensive landbank of 2,754.69 hectares, including 502.95 hectares with FLI joint venture partners. Its landbank is concentrated in the rapidly developing Calabarzon region located primarily south and east of Metro Manila. FLI estimates that its landbank would support its project development activities for the next five to 10 years.       

In a related development, the board of FLI also approved on Monday an annual cash dividend payment policy of 20 percent of its consolidated net income from the preceding fiscal year for the corporation's issued shares.

Business Mirror

January 9, 2007