Filinvest falls after delaying share sale

Reuters

Posted at Jan 24 2011 10:27 AM | Updated as of Jan 25 2011 03:40 AM

MANILA, Philippines - Property-to-banking conglomerate Filinvest Development Corp (FDC) fell more than 9 percent on Monday after announcing it would delay a follow-on stock offer due to uncertain market conditions.

Shares of Filinvest fell as much as 9.6% in early trade.

On Friday, Filinvest Development said it decided to postpone a follow-on equity offering of up to 2.5 billion shares due to "volatile market conditions." 

"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," the company said.

FDC did not disclose the proposed offer price. 

Shares in the company, which has a market value of $874 million, has lost more than 20 percent from a record high of 6.35 pesos on January 14.

The company said in early January it was selling shares to raise funds for investment and debt repayment and to increase public float. It was looking to complete the deal by the end of January.

FDC had hired UBS AG as the sole global coordinator, which was also mandated as joint bookrunner with J.P. Morgan Securities Ltd.