BDO completes P60B stock rights offer

The country’s leading lender Banco de Oro Unibank has completed the sale of P60 billion worth of shares to existing shareholders, making history for completing the largest equity capital markets transaction in corporate Philippines to date.

The stock rights offering saw strong participation from the bank’s domestic and international investors and was oversubscribed, BDO said in a disclosure to the Philippine Stock Exchange on Thursday.

On the Jan. 31 listing date, around 716.4 million rights shares will be issued at a price of P83.75 each. Each eligible stockholder was entitled to subscribe to one common share for every 5.095 common shares.

At the offer price of P83.75, shareholders who subscribed to the offering bought new shares at a 23.4 percent discount to market price based on the 15- day volume-weighted average price of BDO common shares.

“The offer strengthens BDO’s common equity tier 1 capital, and supports the bank’s medium-term growth objectives amid the country’s favorable macroeconomic prospects,” the disclosure said.

Credit Suisse, UBS and BDO Capital served as joint global coordinators for this offering, working together with Citigroup, Goldman Sachs and HSBC as joint bookrunners. BDO Capital served as issue manager and domestic underwriter.

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