The Securities and Exchange Commission said Wednesday it approved the P3.5-billion initial public offering of by Bank of Commerce and the P60-billion bond shelf registration of San Miguel Corp.
BOC plans to offer of up to 280.6 million shares at to P12.50 apiece. The offering size was reduced, following the removal of the over-allotment option of 42.09 million shares.
The bank plans to use the net proceeds from the offering to fund lending activities and finance capital expenditure requirements in connection with the upgrading of its automated teller machine fleet and core banking system. Any remaining proceeds will be used for the acquisition of investment securities to meet regulatory liquidity requirements.
The public offering will run from March 7 to 15, with listing on the main board of the Philippine Stock Exchange scheduled on March 23, according to the latest timetable submitted by the bank to the SEC.
BOC, a subsidiary of San Miguel, provides banking products and services in deposit, commercial loans, credit card services, consumer banking, corporate banking, treasury, asset management, transaction banking and trusts and investments.
It had a network of 140 branches and 257 ATMs as of Sept. 30, 2021.
The bank engaged BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital Inc. and PNB Capital Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the transaction.
The Monetary Board, the policy-making body of the Bangko Sentral ng Pilipinas, earlier approved the upgrade of the banking license of BOC from commercial bank to universal bank, subject to regulatory requirements.
It will allow BOC to provide a much broader range of products and services essential to conglomerates and businesses, particularly those expanding in 2022 as the economy recovers strongly from the pandemic.
“Our expanded banking services will allow us to fortify our presence in the domestic market and deepen relationships with clients and unlock cross sell opportunities which we intend to convert into additional revenue streams,”BOC president and chief executive Michelangelo Aguilar said.
The bank said it is also looking to provide clients access to attractive, whole-life and investment-based insurance products through a strong bancassurance offering.
Meanwhile, parent firm San Miguel plans to issue up to P60-billion fixed-rate bonds in one or more tranches within three years. For the first tranche, the diversified conglomerate will offer to the public up to P25 billion of five-year Series J bonds due 2027, with an overallotment option for another P5 billion of seven-year Series K bonds due 2029.
The proceeds will be used for the refinancing of short-term loan facilities of the company and for other general corporate purposes.
The bonds will be listed on Philippine Dealing and Exchange Corp. on March 1.
San Miguel tapped BDO Capital and China Bank Capital as joint issue managers for the offering and BPI Capital Corp., PCCI, PNB Capital, RCBC Capital Corp. and SB Capital Investment Corp. as joint lead underwriters and bookrunners.