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Filinvest Development [FDC 4.93, up 1.0%; 441% avgVol] [link] has secured the approval of the Philippine Stock Exchange for its planned preferred shares offering, in a bid to raise up to P8 billion. The Gotianun family-led company said it will sell 8 million Series A and Series B preferred shares at an offer price of P1,000 each. FDC said it may increase the original size of the offering by P2 billion if there is strong demand for the share sale. The offer period will run from July 21 through July 31, with the tentative listing date set on August 8. Assuming the oversubscription option is fully exercised, net proceeds shall amount to P7.93 billion. FDC said it plans to use 85.09% of the proceeds to refinance old debts, while the remaining 14.91% will go to capex and general corporate purposes.
MB bottom-line: As some of the recent bond sales have shown, there’s a pretty vibrant market for high(ish) yield fixed-income products right now. Perhaps investors are looking for a place to put some money ahead of whatever craziness might happen in the US with Trump’s repeated attempts to remove the current US Federal Reserve chairman to replace him with someone willing to make a 300 basis point rate cut. Who knows. I’m not recommending FDC’s preferred shares as a way to do that necessarily, but if you are interested in putting some cash away, there are a lot of options now worth considering.
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