Bank of Commerce (BankCom), an affiliate of San Miguel Corporation (SMC), successfully debuted at the Philippine Stock Exchange (PSE) with its share price closing at P12.22 each, 1.83 percent higher than its initial public offering price of P12.00.
The bank raised P3.36 billion from its IPO which consisted of 280.60 million common shares.
“The listing of Bank of Commerce today, the end of March, is another auspicious event for 2 reasons. It will be the first bank listing in the Exchange after nine years and it also marks the first time in 27 years that PSE had IPO listings in all three months of the first quarter,” said PSE President Ramon S. Monzon.
He noted that, “Being the banking arm of the biggest conglomerate in the country, there is really no pressing need for BankCom to raise capital. Its Common Equity Tier 1 and Capital Adequacy Ratio far exceed the corresponding minimum requirements imposed by Bangko Sentral ng Pilipinas.”
“BankCom is undertaking this IPO to comply with the conditions imposed by the Monetary Board in connection with the latter’s approval of the upgrade of the bank’s license from commercial bank to universal bank,” said Monzon.
“BankCom’s strategic vision is to be at par with the country’s leading domestic banks,” SMC President and CEO Ramon S. Ang said.
He added that, “We expect the bank to continue to grow in the coming years, achieve economies of scale, improve efficiency, and serve more Filipinos, from retail customers, small-to-medium enterprises, to major corporate clients, as Philippine economic growth gets back on track.”
“The commitment from our shareholders during this IPO reflects the high level of trust that investors and clients have on significant growth opportunities for BankCom in the years to come,” said BankCom President and CEO Michelangelo R. Aguilar.
Monzon said BankCom now counts among its shareholders Local Small Investors (or LSIs) from 46 provinces and 12 countries.
“I thought that we had already saturated all the countries with potential LSIs in our previous IPOs, but for this IPO, we logged the first investor from Cambodia,” he added.
The PSE’s chief executive also noted that, “Retail and institutional investors alike have shown enthusiastic support for this IPO, confident that the bank’s strategic plans coupled with its upgraded license will make BankCom more competitive in the industry.” Proceeds from the Bank’s IPO will fund the Bank's lending activities and finance capital expenditure requirements in connection with the upgrading of its ATM fleet and its core banking system.