Bank of Commerce, the banking unit of diversified conglomerate San Miguel Corp., plans to raise up to P4 billion from an initial public offering next year as part of its application to become a universal bank.
The bank filed an application with the Securities and Exchange Commission to sell up to 280.6 million common shares, with an over-allotment option for another 42.09 million shares at an offer price of P12.50 each.
The bank use the net proceeds from the offering to fund lending activities, acquisition of investment securities and capital expenditures that include the upgrading of automated teller machines and core banking system.
BOC said it would conduct the IPO as part of a universal banking license application. “With a universal banking license, the bank 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,” the bank said.
BOC, one of the country’s fast-growing commercial banks, has been in operations since 1963.
San Miguel bought into the bank in 2008 and became a majority stakeholder through the combined voting stake of San Miguel Corp. Retirement Fund, San Miguel Properties Inc. and SMC Equivest.
Bank of Commerce had 140 branches and 257 ATMs strategically located nationwide as of end-September.
The bank registered a net income of P625.7 million in the first three quarters, up 26.3 percent from P495.3 million in the same period last year.
This was driven by 7.21-percent in net interest income to P3.99 billion on lower funding cost as interests declined.
Total assets grew 14.25 percent to P195.3 billion with the purchase of investment securities at amortized cost, which accounted for 20.17 percent of the total.
Gross loan portfolio also increased 3.79 percent to P75.9 billion from P73.1 billion.
BOC hired BDO Capital and Investments Corp., ChinaBank Capital, Philippine Commercial Capital Inc. and PNB Capital as the joint issue managers and underwriters for the IPO.