Tycoon Lucio Tan-led Philippine National Bank (PNB) plans to raise about P12 billion in fresh equity from the sale of new shares to existing shareholders.
PNB’s board approved on Friday a stock rights offering to “strengthen its common equity tier 1 and enable the bank to sustain its asset growth.”
The capital buildup will still be subject to regulatory approvals as may be required, such as by the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas, as well as the approval for listing by the Philippine Stock Exchange.
PNB plans to issue the shares from its authorized but unissued capital stock.
The final issue size, entitlement ratio, offer price, record date, appointment of the parties and other terms will be finalized by the management.
“It is expected that PNB’s major shareholder, LT Group Inc., will support the offer,” the disclosure said.
PNB’s consolidated risk-based capital adequacy ratio (CAR) exceeds the minimum regulatory requirement of 10 percent to date. The bank wants more leeway to expand its capital base to fund future expansion.
As of end-2018, its CAR stood at 14.35 percent while common equity tier 1 ratio was at 13.55 percent.
PNB, one of the country’s largest banks, has total consolidated resources of P983.6 billion.
The bank was valued by the stock market at P70.7 billion as of Friday’s close. The public holds 21 percent of its shares.
In 2018, PNB posted a net profit of P9.6 billion, up 17 percent from year-ago level.