AUB prices IPO at P95 per sJAMES A. LOYOLAhare

Asia United Bank (AUB) has priced its P8.36 billion initial public offering (IPO) (including over-allotment option) at P95.00 per share, lower than the maximum price of P110 per share set by the bank for the IPO.

In a disclosure to the Philippine Stock Exchange, the bank said it is selling 80 million shares plus an over-allotment option of 8 million shares. The domestic offer will start on May 7 and listing date has been set on May 17, 2013.

IPO global coordinator UBS AG said "the international order book was 5 times oversubscribed with approximately 90 investors. About 75 percent came from Asia and 25 percent from Europe."

It added that the order book was covered throughout the price range but the issuer wanted to ensure aftermarket support. It was executed in a quick 3.5 days roadshow.

"Jack Ng's initial foray into the international capital markets received overwhelming support from the investor community," UBS said.

Jacinto Ng of the Rebisco group said "the IPO is part of the process to fully comply with the (requirements for the issuance of a) universal banking license" adding that they will focus on organic growth but remain in the "lookout for potential acquisitions that can help fast-track growth."

The bank said it has evaluated its capital in light of its business strategy and determined that the IPO would further solidify its capital adequacy and financial strength and, more importantly, allow the bank to pursue its strategic growth initiatives.

These initiatives include the continued expansion of its branch network via organic and inorganic means and expanding its credit and balance sheet to meet increased demand from the growing economy.

AUB will also pursue the deepening and expanding of its customer relationships while developing new business segments and enhancing the suite of products and services offered by the bank.

The bank said it intends to use the net proceeds from the IPO for acquisitions or payments for restricted branch licenses (P1 billion), expansion of its branch network (P1 billion), investments and implementation of IT infrastructure (P650 million), and the balance for general corporate purposes including the expansion of its interest-earning asset base.

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • China ignores global outcry vs reclamation
    China ignores global outcry vs reclamation

    On Wednesday, G-7 foreign ministers issued a Declaration on Maritime Security expressing alarm over “unilateral actions, such as large scale land reclamation, which change the status quo and increase tensions” in the region. In their communiqué, which did not specifically mention China, the ministers expressed belief that reclamation activities were meant to “change the status quo” in the West Philippine Sea and South China Sea, through which 40 percent of global trade passes. …

  • Project NOAH exec receives recognition
    Project NOAH exec receives recognition

    Project NOAH executive director and University of the Philippines professor Mahar Lagmay recently received recognition from the European Geosciences Union (EGU) for his work in disaster risk reduction and mitigation in the Philippines. …

  • Nightclub ban for US troops
    Nightclub ban for US troops

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said yesterday, with the trial under way of a US Marine accused of murdering a transgender Filipino he met in a bar. Thousands of American and Filipino soldiers will kick off tomorrow the 10-day annual military exercises, according to Capt. Alex Lim, a spokesman for the US forces, but there will be strict controls on their free time. Lim would not say why the restrictions were imposed but …

  • US-Phl war games to start under China’s shadow
    US-Phl war games to start under China’s shadow

    Thousands of American and Filipino soldiers will kick off tomorrow expanded wargames, showcasing a deepening  defense alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China’s increasing forcefulness in its bid …

  • Palace defends legal tack in sea row
    Palace defends legal tack in sea row

    There is nothing weak about taking the legal and diplomatic approach to push for the country’s claims in the disputed West Philippine Sea, Malacañang maintained yesterday. On Friday, Bayan Muna Rep. Neri Colmenares led a rally in front of the Chinese consulate in Makati City to protest China’s massive reclamation activities in the Spratly island group to fortify its presence in the disputed waters. Colmenares also criticized the Philippine government for supposedly not doing enough to defend …

  • Veloso sons urge authorities to save mother from death
    Veloso sons urge authorities to save mother from death

    The sons of Mary Jane Veloso, who is facing execution in Indonesia for drug smuggling, yesterday appealed to government officials to do everything to spare their mother from death. “We love you,” Mark Daniel, 12, said when asked for a message for his mother following a press conference at the University of the Philippines in Diliman, Quezon City. Mark Daniel, an incoming Grade 8 student, reiterated his appeal to those in power to help save his mother from death. His younger brother, …

  • US-Philippines wargames to start under China's shadow
    US-Philippines wargames to start under China's shadow

    Thousands of American and Filipino soldiers on Monday will kick off expanded wargames, showcasing a deepening defence alliance as alarm bells ring over China. The 10-day exercises in the Philippines are an annual affair between the longtime allies, but this time they will involve double the number of soldiers as last year in a sign of their expanding military partnership. The Philippines is seeking more US military and diplomatic support to fend off China's increasing forcefulness in its bid …

  • Bar ban for US troops in Philippines amid murder trial
    Bar ban for US troops in Philippines amid murder trial

    The US Pacific Command has banned its troops in the Philippines from bars and nightclubs, a spokesman said Saturday, with the trial under way of a US Marine accused of murdering a transgender Filipina he met in a bar. Thousands of American and Filipino soldiers will on Monday kick off 10-day annual military excercises, according to Captain Alex Lim, a spokesman for the US forces, but there will be strict controls on their free time. Lim would not say why the restrictions were imposed but …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options