Philippine Business Bank, the financial arm of Zest-O Corp. owner Alfredo Yao, said Friday it plans to raise P500 million from a stock rights offering, after completing a P1.25-billion private placement.
PBB said in a stock exchange filing the principal shareholders of the bank completed their subscription to 125 million shares at P10 apiece, which was equivalent to P1.25 billion.
The bank said the principal shareholders initially paid P312.5 million on Sept. 21, 2022 and the balance of P937.5 million on Jan. 10, 2023.
The P1.25 billion, which are booked under deposit for future stock subscription, will support the bank’s proposed increase in its authorized capital to P5 billion.
PBB said it also plans to conduct a rights offering of up to 50 million common shares at P10 apiece to minority shareholders within the year.
The bank said the rights offer, the increase in the authorized capital stock and the listing of the rights shares are each subject to regulatory approvals.
The bank earlier announced its intention to raise P1.75 billion to increase its authorized capital stock and support its fund-raising efforts,
The Philippine Stock Exchange implemented a one-hour trading suspension on PBB’s stock since the disclosure was covered by additional listing rule of the exchange.
“Under the additional listing rule, the stockholders of the bank must approve the private placement transaction. Further, as a general rule, the exchange shall not permit the listing of shares subscribed by related parties unless a rights or public offering is first undertaken,” the PSE said.
“However, the requirement for a rights or public offer may be waived by a majority vote representing the outstanding shares held by the minority stockholders in a special meeting,” it said.
The share price PBB closed at P10.98 Friday, down 0.90 percent from previous trading.