Philippine Business Bank of Zest-O owner Alfredo Yao is beefing up its capital by P5 billion in preparation for its planned stock rights offering this year.
In a stock exchange filing, PBB said its major shareholders have subscribed to P1.25 billion worth of shares of the bank and paid P312.5 million.
“The principal shareholders are advancing their participation to the stock rights offering by subscribing to the increase in authorized capital stock,” PBB said.
The Yao-owned bank said the rights offer, capital hike and the listing of rights shares are subject to regulatory approvals.
PBB is looking to raise about P1.75 billion from the issuance of new shares to existing shareholders as part of its capital build-up program. The shares will be sold at P10 apiece.
Proceeds from the offering will be used to support general corporate requirements.