BPI’s stock rights offer priced at P89.50 each

INQUIRER file photo

Ayala-led Bank of the Philippine Islands (BPI) has firmed up its P50-billion stock rights offering at an offer price of P89.50 per share.

As the offer price marked a 23-percent discount from BPI’s last closing price of P117 per share before the long Lenten break, share prices declined on Monday. As of 11:15 am, shares were down by 4.4 percent. Intra-day losses, however, were trimmed at close. At the end of the day, BPI’s shares fell by 1.71 percent to close at P115 per share on Monday.

BPI’s pricing carried a 21.6-percent discount to the 15-day volume-weighted average price.

The bank is set to offer 558.66 million new common shares to existing shareholders.

The entitlement ratio was set at one rights share for every 7.0594 shares held.

The offering will start on April 16 and end on April 25. Listing on the PSE is tentatively scheduled for May 4.

Shareholders as of record date April 6 will be eligible to subscribe to the stock rights offering. Ex-date is on April 3.

Proceeds from the offering will be used by BPI to “enhance its capital position to further expand its presence in emerging growth areas particularly funding loan growth in the consumer, SMEs (small and medium enterprises) and microfinance segments, while achieving a buffer over higher loss absorbency requirements under Basel 3 rules as well as funding infrastructure expansion.”