Bank of Commerce sets IPO price at P12 a share

San Miguel Corp.’s banking arm has priced its initial public offering at P12 per share, bringing the equity deal to P3.37 billion.
Bank of Commerce president Michaelangelo R. Aguilar disclosed to the Philippine Stock Exchange the final offer price for its maiden share sale which will start on March 16 through 22 while the listing of the shares has been tentatively set on March 31.
READ: All systems go for Bank of Commerce IPO
The bank will offer up to 280.6 million shares, representing 21.3 percent of its issued and outstanding capital. It will be the fourth company to list on the stock market this year.
Proceeds from the IPO will be used to bankroll the bank’s lending activities, acquire investment securities and finance its capital expenditure requirements.
The IPO was a pre-requisite to the lender’s conversion into a universal bank.
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With a universal banking license Bank of Commerce will have more opportunities to generate and warehouse interest bearing assets like marketable securities, generate more fee-based income, and manage risk of securities underwritten and held for trading.
BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc., and PNB Capital Investment Corp. are the joint issue managers, joint lead underwriters, and joint book runners.