The Bank of the Philippine Islands (BPI) has raised as much as P25 billion through a stock rights offering, capping the largest capital market transaction it has done in its history.
A filing with the Philippine Stock Exchange on Tuesday showed that BPI has concluded its stock rights offer, and raised P25 billion with an issuance of 370 million common shares at P67.50 a share. The shares issued were at a ratio of 1:9.602 common shares held or 10.4 percent of outstanding shares.
Considered the largest capital markets transaction in the bank’s history, the rights offer received strong support from BPI shareholders, both domestic and foreign, with 99-percent take-up and over P33.5 billion in subscriptions.
The bank’s major shareholders Ayala Corp. and Ayala DBS Holdings Inc., a company held by Ayala Corp. and Government of Singapore Investment Corp., also subscribed to the rights offer.
Completion of this transaction will increase BPI’s Tier 1 capital adequacy ratio from 14.7 percent to 18.6 percent on a pro-forma basis, based on the bank’s latest disclosed financials on September 30, 2013.
“This transaction is about confidence on the part of our shareholders on the growth prospects of our country, our clients, and our bank. We are grateful for their overwhelming vote of confidence in the bank’s ability to execute on its growth strategy,” said Cezar Consing, BPI president and chief executive officer.
The listing date for the rights offer shares is on February 10.
BPI Capital Corp. was sole global coordinator, sole domestic bookrunner and domestic underwriter for the rights offer. Goldman Sachs and J.P. Morgan were the joint international bookrunners and underwriters.
In an earlier disclosure, BPI said that it priced its stock rights offer at P67.50, which will have an entitlement ratio of 1 rights share for every 9.602 common shares held.
“We write in connection with the offering for subscription of up to 370.4 million shares of common stock, with a par value of P10 per share of Bank of the Philippine Islands by way of a stock rights offering to existing eligible registered holders of common shares as of January 16, 2014,” the Ayala-led bank earlier told the local bourse.