Latest Stories

Bank sets IPO price range

In going public, East West officials expect to raise up to P5.76B


Gotianun-led East West Bank has set a price range of P18.50 to P23.50 for its initial public offering, which will bring about a fourth of the bank’s ownership in public hands and raise fresh funds for expansion and its bid to become one of the country’s major banks.

The bank plans to sell 245.32 million common shares plus 36.8 million in “optional” shares. This brings the base IPO size at P4.5 billion to P5.76 billion ($134M). Including the over-allotment option, the equity deal can increase to a range of P5.22 billion to P6.63 billion.

Apart from raising fresh funds for expansion, East West Bank chair Jonathan Gotianun said its stock debut meant the bank was “prepared to subject itself to higher standards of corporate governance.”

Being a publicly listed company, Gotianun said, would also give East West a “new currency” to fund potential merger and acquisitions in the future.

In the last decade, East West Bank has had three acquisitions—Ecology Bank (2003), AIG Philam Savings Bank (2009) and Green Bank (2011).

“We have put in place all the ingredients to become among the country’s largest banks,” Gotianun told investors.

“We have the momentum, track record and we believe we have a very good team to execute … The Philippine economy, the operating environment is also favorable for growth and we don’t see anything that will conceivably change that,” Gotianun said.

For 2012, East West Bank plans to expand its loan portfolio by 20-25 percent.

The bank’s domestic offering will run from April 20 to 26 while listing will be on May 7.  The final IPO price will be set on April 18.

East West Bank will be the first bank to debut on the PSE in eight years.  About 70 percent of its offering is earmarked for offshore investors.

The bank’s international lead managers for this IPO are Deutsche Bank AG and J.P. Morgan Securities while Unicapital Inc. is the local arranger.

The bank intends to use the net proceeds from the primary offer for the payment of bank branch licenses, the expansion of the branch network and implementation of IT infrastructure, and for general corporate purposes.

Follow Us

Follow us on Facebook Follow on Twitter Follow on Twitter

Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: AIG Philam Savings Bank , East West Bank , East West Bank chair Jonathan Gotianun , Ecology Bank , Green Bank , initial public offering

Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94


  • Drunk passenger triggers Bali hijack alert
  • Businesswoman allegedly killed by husband, brother-in-law
  • Roxas suspended from golf club for outburst over P5,000 guest fee
  • SC reschedules oath-taking of new lawyers
  • Ex-COA chief seeks bail after arrest for plunder
  • Sports

  • Guiao fined P100,000 for ‘mongoloid’ comment vs Meralco forward
  • Hawks and Grizzlies revel in home wins
  • Floyd: Manny’s power gone
  • Michael Phelps loses to Lochte in comeback meet
  • Sharapova advances to Stuttgart quarterfinals
  • Lifestyle

  • ‘Recovered’ Banksy works on display ahead of sale
  • Marinduque: Visiting the ‘palm of the ocean’
  • First at Vatican in 60 years
  • How Jing Monis Salon gave Krissy the pixie
  • Want to be a supermodel? Work on your inner beauty, says Joey Espino
  • Entertainment

  • Paul McCartney to play at Candlestick concert
  • Kristoffer Martin: from thug to gay teen
  • Has Ai Ai fallen deeply with ‘sireno?’
  • California court won’t review Jackson doctor case
  • Cris Villonco on play adapted from different medium
  • Business

  • PAL hailed for ban on shark fin cargo
  • BSP to change tint of P100 bill
  • Nielsen sees car buying boom in the Philippines
  • How author of best-seller exposed ‘one percent’ economic elite
  • Bangko Sentral readies new bank lending rules
  • Technology

  • Cloud strength helps Microsoft earnings top Street
  • Vatican announces hashtag for April 27 canonizations
  • Enrile in Masters of the Universe, Lord of the Rings?
  • Top Traits of Digital Marketers
  • No truth to viral no-visa ‘chronicles’
  • Opinion

  • Corruption not invincible after all
  • Editorial Cartoon, April 25, 2014
  • No deal, Janet
  • Like making Al Capone a witness vs his gang
  • MERS-CoV and mothers
  • Global Nation

  • Plane lands at Bali airport in suspected hijacking—Indonesia air force
  • Obama lands in Seoul as N. Korea nuclear test fears grow
  • Militant protests vs Obama, US set
  • Filipinos second-shortest in Southeast Asia
  • China welcomes PH apology
  • Marketplace