Union Bank of the Philippines has set the final offer price for its P12 billion stock rights offering at P56.88 per share, above the midpoint of its indicative price range of P54.48 to P58.38 per share.
In a disclosure to the Philippine Stock Exchange, the bank said the offer price was determined based on the volume-weighted average price of the Union Bank’s common shares on the PSE for each of the 15 consecutive trading days immediately prior to (and excluding) January 4, 2023 and applying a discount of 30 percent.
The bank sad it has also set the entitlement ratio at one rights share for every existing 10.1536 common shares held as of the record date.
At this ratio, the bank is offering a total of 210.97 million rights shares to its shareholders to raise the target P12 billion.
The bank said it is planning to offer the rights shares from Jan. 16 to Jan. 27, 2023. The ex-rights date is on Jan. 9 while the record date is on Jan. 12, 2023.
The proceeds from the stock rights offering will be used to fund the capital infusion to UnionDigital, loan availments by retail, corporate and commercial customers, other business growth opportunities or investment securities and other assets, and general corporate purposes.
“The Bank’s latest balance sheet projections based on its economic outlook shows that any additional capital requirements beyond P12 billion can be internally generated from existing businesses,” Union Bank said.
The PSE per has approved last Dec. 16 the application of Union Bank to list additional common shares to cover its stock rights offering.
Prior to this, the Securities and Exchange Commission had issued a Notice of Confirmation of Exempt Transaction confirming that the Offer is exempt from the registration requirements of the Securities Regulation Code.