Tycoon Lucio Tan-led Philippine National Bank has obtained approval from the Securities and Exchange Commission to beef up its authorized capital to P70 billion from P50 billion to make room for expansion.
This increase in capital was based on the SEC’s approval for the bank to amend its articles of incorporation to be able to issue 500 million new common shares.
Each share has a par value of P40 per share, but based on PNB’s last closing price of P90.35, the additional authorized capital can give the bank additional market capitalization of P45.17 billion.
The new authorized capital of P70 billion will be divided into 1.75 billion common shares.
“The increase in authorized capital will be used for additional working capital,” PNB disclosed.
PNB also plans to halve its stock of foreclosed assets this year by unloading about P10 billion of such real and other properties acquired through a series of asset pool transactions this year.
Earlier this year, PNB completed a P11.6-billion capital-raising exercise through the sale of shares to existing shareholders, preparing for growth in its consumer lending business. Part of the proceeds were intended to infuse fresh capital into Allied Savings Bank as part of the plan to build and refocus the latter’s consumer lending business. The equity deal also strengthens the bank’s capital position under the Basel 3 standards, which took effect on Jan. 1. Doris C. Dumlao