China Banking Corp. said it priced its P15-billion stock rights offering at P31 per share.
China Bank said in a disclosure to the stock exchange the offer price was finalized based on the 15-day volume weighted average price subject to a 24.1-percent discount, with a 25.3-percent discount to last close.
China Bank said it planned to use the proceeds to grow its loan portfolio, expand its branch network and support its other strategic business initiatives.
China Bank said in the stock rights offering in 2014, rights shares were also entitled to the cash and stock dividends approved by the stockholders that same year.
China Bank president and chief executive Ricardo Chua said the stock rights offering “would provide sufficient capital and financial strength to enable the bank to expand its market position and extend the depth and breadth of its business reach”.
Ex-rights date is April 12, the last day to be entitled to the stock rights offering. The offer period will run from April 24 to May 5, 2017.
China Bank Capital Corp. is the issue manager, joint bookrunner and domestic underwriter, while Citigroup Global Markets Inc. and JP. Morgan Securities are the joint global coordinators and joint bookrunners.
China Bank earlier reported a 15-percent increase in net income to P6.45 billion, citing sustained growth in core businesses across all market segments.
China Bank, founded in 1920, is the country’s first privately owned local commercial bank. It is now one of the largest private universal banks in the Philippines providing a full range of banking products and services to corporate, commercial, and retail customers through 548 branches, including the 157 branches of subsidiary China Bank Savings.
It also offers bancassurance and insurance brokerage services through subsidiaries China Bank Manulife Life Assurance Corp. and China Bank Capital Corp.
