1 week ago
23
Upgrade to High-Speed Internet for only ₱1499/month!
Enjoy up to 100 Mbps fiber broadband, perfect for browsing, streaming, and gaming.
Visit Suniway.ph to learn
Filinvest Development Corp. [FDC 4.54, up 0.9%] [link] applied to the SEC for approval to list up to P6 billion worth of preferred shares, with up to an additional P2 billion worth of preferred shares in an oversubscription option. No other information was provided on the dividend rate, per-share price, or timing of the transaction.
MB bottom-line: Checking FDC’s latest quarterly report shows that the company has 2 billion authorized (but not issued) preferred shares. It’s usually up to the management team to decide how those authorized shares get deployed. It’s actually a pretty huge stockpile of authorized prefs, since the management team could decide they’re each worth P10/share, making the whole pile worth P20 billion, or they could decide they’re each worth P100/share (P200 billion), or P1000/share (P2 trillion). Yeah, the numbers get dumb real fast (FDC has a total marketcap of just P39 billion), but the point here was just to talk about how the mechanics of this would work behind the scenes. There’s no need for FDC to make any changes to its documents to create a prefs class and convert some of its capital stock to that prefs class (it already did this). It just has to get the SEC’s permission to market, sell, and then list these prefs on the PSE, which is a rather straightforward thing to do.
Merkado Barkada is a free daily newsletter on the PSE, investing and business in the Philippines. You can subscribe to the newsletter or follow on Twitter to receive the full daily updates.
