BDO prices P60-B stock offer at 23.4% discount

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BDO Unibank Inc. has set the price of its planned stock rights offer at P83.75 per share, a 23 percent discount.

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The bank said the offer price was based on a 15-day volume weighted average price of BDO’s common shares listed on the PSE. BDO is offering 716.4 common shares to qualified stockholders on record as of January 20, 2017, to raise P60 billion in fresh funds.

“Each eligible stockholder is entitled to subscribe to one (1) common share for every 5.095 common shares held as of record date at an offer price of P83.75 per rights share,” the bank said in a statement Wednesday.

The offer period will run from January 16 to January 24. The shares will be listed on the PSE on January 31.

The proceeds from the stock rights offer will fund the bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects, and provide a comfortable buffer over higher capital requirements with the forthcoming imposition of the Domestic Systemically Important Bank (DSIB) surcharge.

BDO has appointed Credit Suisse, UBS and BDO Capital as joint global coordinators and bookrunners, with Citigroup, Goldman Sachs and HSBC as joint bookrunners. BDO Capital & Investment Corp. will serve as issue manager and domestic underwriter.

SM Investments Corp., BDO’s controlling and majority shareholder, has expressed its full support for the bank’s expansion plans and the proposed rights offer. SMIC committed to subscribe to about P25 billion of BDO’s stock rights offer — its proportionate share and any shares not taken up by minority shareholders.

As of end-September 2016, BDO ranked as the country’s largest bank in terms of total assets, loans, deposits and trust funds under management based on published statements of condition.

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