MANILA, Philippines – San Miguel Corporation affiliate Bank of Commerce is seeking to raise P3.5 billion through an initial public offering (IPO) to fund its lending activities and capital expenditure requirements.

The Securities and Exchange Commission said Bank of Commerce seeks to offer 280.6 million common shares at an offer price of up to P12.50 per share. 

It also has an overallotment option of up to 42.09 million shares. Should the bank opt for this option, it could raise over P4 billion.

Net proceeds from the offer will be used to fund its lending activities, acquisition of investment securities, and capital expenditure requirements in connection with the upgrading of its automated teller machine fleet and its core banking system.

Final pricing is expected on March 1, 2022, while the offer period is from March 7 to 18. Listing of the offer shares on the Philippine Stock Exchange is targeted to be on March 25.

Bank of Commerce engaged BDO Capital and Investment Corporation, China Bank Capital Corporation, Philippine Commercial Capital, and PNB Capital Investment Corporation as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

The bank’s total assets amounted to P195.3 billion as of end-September.

Net profit stood at P784.4 million in 2020 and P625.7 million for the first nine months of 2021. – Rappler.com