SEC OKs Bank of Commerce IPO in bid to become universal bank

Securities and Exchange Commission

MANILA, Philippines—The Securities and Exchange Commission (SEC) has cleared an initial public offering (IPO) worth up to P3.5 billion planned by Bank of Commerce in March to meet a key requirement to upgrade its license from a regular commercial bank to a universal bank.

The SEC likewise approved a P60-billion new bond shelf registration planned by Bank of Commerce’s parent conglomerate, San Miguel Corp. (SMC).

In its Feb. 15 meeting, the SEC en banc rendered effective the registration statements of Bank of Commerce and SMC, subject to compliance with remaining requirements.

The 140-branch Bank of Commerce will offer to the public up to 280.6 million shares at a maximum price of P12.50 per. The shares will be listed on the main board of the Philippine Stock Exchange.

The bank’s IPO is targeted to run from March 7 to 15, with listing scheduled for March 23, according to the latest timetable submitted to the SEC.

BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc. (PCCI), and PNB Capital Investment Corp. are the joint issue managers, joint lead underwriters, and joint book runners for the equity deal.

For SMC’s bond shelf, the first tranche will consist of up to P25 billion of five-year (series J) bonds due 2027, with an over-allotment option of up to P5 billion of seven-year (series K) bonds due 2029.

Proceeds will be used to refinance short-term loan facilities and other general corporate purposes.

BDO Capital and China Bank Capital are joint issue managers for the offering. They will work alongside BPI Capital Corp., PCCI, PNB Capital, RCBC Capital Corp., and SB Capital Investment Corp. as joint lead underwriters and book runners.

TSB