Tycoon Alfredo Yao’s Philippine Business Bank (PBB) is raising P500 million through a stock rights offer next month as it vies for a universal bank license that would allow it to compete with the country’s biggest lenders.
PBB said in a stock exchange filing on Monday it would push through with the sale of 50 million rights offer shares to stockholders at P10 each.
It also set the entitlement ratio at one rights share for every 4.6428 shares owned.
The timetable for the offer has yet to be finalized, however, Yao told the Inquirer on Monday they were targeting to hold the fundraising exercise this coming February.
PBB said proceeds from the share sale would be used “primarily to increase PBB’s capital to comply with minimum capital requirement for a universal bank license.”
“Proceeds from the offer will be used to increase the bank’s capitalization which will greatly expand the bank’s capability to develop more businesses and harness opportunities in the financial services space,” the lender said.
“The increase will also enable PBB to meet the growing demands of the banking business and positions the bank to exploit opportunities as the economy rebounds,” it added.
The PBB board earlier approved a capital increase of P1.75 billion. This covers P1.25 billion from a share issuance to its controlling shareholders—which was completed last Jan. 10—and up to P500 million from a stock rights offer.
PBB earlier submitted an application to increase its authorized capital stock before the Securities and Exchange Commission and the Bangko Sentral ng Pilipinas. INQ