MS 30th Anniversary XXX

AUB trims initial public offering

Asia United Bank, a medium-sized lender controlled by leading snack food maker Rebisco Biscuit Corp., has trimmed its planned initial public offering to P9.68 billion from the original target of P11.3 billion. Documents filed with Securities and Exchange Commission show AUB would sell up to 88 million shares, including 8 million option stocks for overallotment. AUB can generate proceeds of as much as P9.86 billion at a maximum offering price of P110 per share. AUB initially planned to list 102.85 million shares at P110 apiece. It will peg the final price on May 3 and offer them from May 7 to May 14. The listing date has been set on May 17. The SEC en banc on Monday approved the planned IPO. AUB said in a prospectus it would give priority to existing and new customers when it offers the shares. “Applicants who open banking accounts with AUB will likewise be granted priority in the allocation of offer shares over applicants who do not have bank accounts with AUB,” the bank said. The bank said it would sell 56 million common shares to investors outside the United States and 24 million to local buyers. Interested investors must purchase a minimum of 100 common shares with increases in multiples of 10. The bank plans to use proceeds from the IPO to solidify the bank’s capital adequacy and financial strength and pursue strategic growth initiatives through the expansion of the branch network by acquiring restricted licenses, investments and implementation of IT infrastructure and for general corporate purposes. The bank was granted 54 branch licenses by the Bangko Sentral ng Pilipinas as a result of its acquisition of Cooperative Bank of Cavite Inc. in 2011 and Asiatrust Bank in 2012. It also bought the Rural Bank of Angeles to boost its presence outside Metro Manila. The licenses allowed AUB to open branches in the restricted areas of Metro Manila within a three-year grace period. The bank this year plans to open 20 new branches in Metro Manila and 33 in 2014. It also aims to open 25 outside Metro Manila in 2013 and 10 in 2014. With Julito G. Rada
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