The Securities and Exchange Commission (SEC) has given the banking arm of conglomerate San Miguel Corp. (SMC) the green light to raise at least P3.5billion via an initial public offering (IPO) next month.
The corporate regulator said it has approved the lender’s planned IPO.
The big bank is looking at raising P3.5 billion via the sale of 280.6 million common shares at a maximum price of P12.50 per share with an overallotment option of 42.1 million shares that potentially raises the proceeds to as much as P4 billion.
Offer period will run from March 7 to 15, and the shares will be listed on the main board of the Philippine Stock Exchange (PSE) on March 23.
According to the Bank of Commerce, the proceeds of the fund raising activity will be used to upgrade the bank’s automated teller machine fleet as well as its core banking system.
Bank of Commerce has a network of 140 branches and 257 ATMs nationwide.
The bank has tapped BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital Inc. (PCCI), and PNB Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners.
Last December, the Bangko Sentral ng Pilipinas (BSP) upgraded the lender’s license to universal from commercial bank, giving it a much broader range of products and services essential to conglomerates and businesses.
The bank has a strong capital position after obtaining a P5.5 billion capital infusion from SMC Equivest.
SMC President and CEO Ramon Ang earlier said the banking sector is crucial to the country’s full economic recovery from the impact of the COVID-19 pandemic.