EastWest Banking Corp., the banking unit of the Gotianun family, has priced its planned stock rights offering at P21.53 per share to raise P8 billion to support expansion.
EastWest said a disclosure to the stock exchange the final offer price would represent a 12.8-percent discount to the stock’s volume-weighted average price for the past 15 trading days immediately prior the pricing date.
It would also represent a 12-percent discount to the stock’s closing price of P24.50 on Monday.
The bank said it would offer as much as 371.585 million right shares which would entitle existing shareholders to subscribe to 32.93 right shares for every 100 shares owned.
Offer period will be from April 24 to April 30 while listing date was set on May 8.
HSBC is the sole international lead manager while Unicapital Inc is the sold domestic lead manager and underwriter for the offering.
EastWest said proceeds from the offering would be used to further enhance its capital adequacy and financial strength, as well as support critical strategic growth initiatives, including expanding its balance sheet to meet increased demand from the growing economy across the bank’s target market of retail customers and mid-market corporates.