BankCom debut to end 9-year drought of banking IPOs
For the first time in nine years, a new banking play is coming to market next week with the maiden offering of up to P3.5 billion of Bank of Commerce (BankCom), the banking arm of conglomerate San Miguel Corp. (SMC).
The Philippine Stock Exchange (PSE) has cleared BankCom’s offering of up to 280.6 million primary shares at a maximum price of P12.50 per share. The initial public offering (IPO) will run from March 16 to March 22 after finalizing its offering price on March 11.
The bank will list on the PSE on March 31 under the ticker “BNCOM.”
The last time that the stock market had seen a banking IPO was in 2013, when Asia United Bank went public. That same year, Philippine Business Bank also debuted in the stock market.
BankCom is the fourth company to debut on the stock market this year, after Citicore Energy REIT, Figaro Coffee Group and Haus Talk Inc.
“Bank of Commerce is certainly a welcome addition to the roster of banking stocks in the PSE. This IPO will not only benefit the bank but its clients and future shareholders as well, more so now that it has been granted a universal bank license,” said PSE president and CEO Ramon Monzon.
Shares in public hands
Based on BankCom’s prospectus—upon completion of the offer and assuming full purchase by the SMC group of shares from stabilization activities—21.34 percent of BankCom’s issued and outstanding capital stock will be held by the public.
Ten percent of the firm offer shares will be made available to local small investors, who may subscribe through the PSE EASy website or mobile application.
The joint issue managers, lead underwriters and book runners for the offering are BDO Capital & Investment Corp., China Bank Capital Corp. and PNB Capital and Investment Corp.
Philippine Commercial Capital Inc. is also a joint issue manager, underwriter, bookrunner, financial advisor and issue coordinator.
BDO Capital is mandated to act as the stabilizing agent. Any stabilization activities may begin on or within 30 days after the listing date covering up to 22.5 million shares.
BankCom’s IPO is being conducted as part of its universal banking license application.
Upgraded banking license
“With a universal banking license, the bank will have more opportunities to generate and warehouse interest bearing assets like marketable securities, generate more fee-based income, and manage risk of securities underwritten and held for trading,” the bank said in its prospectus.
“This will also enable the bank to enhance its marketing relationship with existing and prospective clients in the large corporate and middle market segments as it will be carrying a broader range of products, from traditional working capital lines and term loans to project finance, initial public offerings, mergers and acquisitions, financial advisory, etc. The latter services are essential to large businesses in planning their expansion programs as a response to the increasing demand brought about by the robust economy,” it added.
On Dec. 23, 2021, the Bangko Sentral ng Pilipinas approved the upgrade of its banking license from commercial bank to universal bank, but going public within one year was among the conditions set by the regulator.
