The Lucio Tan-led Philippine National Bank (PNB) has raised nearly P12 billion through a share sale to its existing stockholders, of which the proceeds will be used to support its asset growth, among others.
In a filing with the Philippine Stock Exchange, the listed bank disclosed that it earned gross proceeds of P11.6 billion from a stock rights offer that was held from January 27 to February 3.
Specifically, a total of 162.9 million rights shares will be issued pursuant to the offer, which was subscribed at a ratio of 15:100 common shares held, at a price of P71 each.
Scheduled to be listed at the Philippine Stock Exchange on February 11, the offer was oversubscribed, receiving strong support from the bank’s shareholders with many of them applying for shares beyond their entitlement.
The bank’s major shareholder LT Group Inc. also fully subscribed to its entitlement from the rights offer.
The proceeds, according to the bank, will bankroll its capital injection into Allied Savings Bank to build and refocus the bank’s consumer lending business.
“The bank believes the offer better positions it to fulfill its medium-term growth objectives and further capitalize on the benefits of its merger with Allied Banking Corp.,” PNB informed the local bourse.
The offer would also strengthen the bank’s capital position under Basel III standards, which became effective on January 1.
“The support shown by the bank’s stockholders to this latest stock rights offering reflects their strong conviction on the long-term prospects of PNB’s growth, and the strengthening of our position not only in the local banking industry but also in the overseas market that it serves,” said Omer Mier, PNB president and chief executive officer.
Credit Suisse and Deutsche Bank were the joint international lead managers and international underwriters, while PNB Capital and Investment Corp. was the sole domestic underwriter.