Bank of Commerce plans P4-B IPO

Published December 9, 2021, 3:54 PM

by James A. Loyola

Bank of Commerce (BankCom), an affiliate of San Miguel Corporation, is planning to raise up to P4 billion from a planned initial public offering next year.

Based on the draft prospectus filed with the Securities and Exchange Commission, the bank is planning to offer up to 280.6 million common shares at an offer price of up to P12.50 per share.

BOC

There will also be an overallotment option of up to 42.09 million common shares to be sold to some shareholders.

Net proceeds from the offer will be used to fund the bank’s lending activities, acquisition of investment securities, and finance capital expenditure requirements in connection with the upgrading of its ATM fleet and its core banking system.

BankCom has engaged BDO Capital & Investment Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., and PNB Capital Investment Corporation as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

The bank said its IPO is being conducted as part of its universal banking license application. 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.

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.

BankCom is one of the country’s fast-growing commercial banks and is licensed by the Bangko Sentral ng Pilipinas. The bank has been operating since 1963.

In 2008, SMC bought into the bank and became a majority stakeholder through the combined voting stake of San Miguel Corporation Retirement Fund, San Miguel Properties, Inc. and SMC Equivest in the Bank.

The bank’s consolidated total assets amounted to P195.28 million as of Sept. 30, 2021. Net profit amounted to P625.7 million for the nine-month period.

 
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