Filinvest postpones equity offering

ABS-CBN News

Posted at Jan 21 2011 06:48 PM | Updated as of Jan 22 2011 02:53 AM

MANILA, Philippines - The Gotianun-led Filinvest Development Corporation (FDC) will postpone a follow on equity offering due to volatile market conditions.

In a disclosure to the stock exchange on Jan.21, Filinvest explained that "While there was ample demand from investors for an offering to be completed, the board has decided that the proposed offer price of its equity shares would not reflect the true value of the company"

Filinvest had planned to raise about P12.7 billion from the follow on offering.

It was also hoping to increase its public float to 29.5% from 6% through the capital raising activity. 

Listed firms need to meed a public minimum float of at least 10%.

The firm added that it will depend on internally generated cash to fund its capital expenditure and expansion plans.

It previously disclosed that it plans to add infrastructure and utilities assets to its business portfolio. It was eyeing 2 potential clean coal-fired power generation projects, namely a 150 megawatt (MW) project in Luzon and another 150 MW project in the Visayas.