Union Bank of the Philippines priced its planned stock rights offering at P56.88 per share, representing the middle of the indicative price range, to raise P12 billion in fresh capital.
The final offer price represents a discount of 35-percent to the stock’s closing price of P87.40 on Wednesday.
UBP senior vice president Joselito Banaag said in a letter to the stock exchange the final offer price was determined based on the volume weighted average of the stock for the past 15 days prior to pricing and applying a discount of 30 percent.
UBP said it would offer 210.970 million common shares to shareholders as of record date Jan. 12. Shareholders are entitled to subscribe to 1 right share for every 10.1536 shares owned. The offer period will be from Jan. 16 to 27, while listing date was tentatively set on Feb.6.
The bank plans to use P8.88 billion of the proceeds to support loan availments by customers. Jenniffer B. Austria