Bank of Commerce eyes March 2022 listing
Business

Bank of Commerce eyes March 2022 listing

The banking arm of diversified conglomerate San Miguel Corp., Bank of Commerce, hopes to launch its initial public offering in March next year, based on the preliminary prospectus it filed with securities regulators.

BankCom is eyeing to raise as much as P3.5 billion from an initial public offering of as much as 281.02 million shares with an overallotment option of up to 42.09 million shares, at a maximum price of P12.50 per share.

The offer price will be finalized on March 1.

Net proceeds from the offer will be used to fund the bank’s lending activities, acquisition of investment securities, and upgrade of its ATM fleet and its core banking system.

The company has engaged BDO Capital & Investment Corp., China Bank Capital, Philippine Commercial Capital and PNB Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the maiden share sale which is targeted to run from March 7 to 18.

BankCom’s IPO is in line with the bank’s goal to upgrade to universal banking.

With a universal banking license, the bank said it would 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 BankCom 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.

BankCom stayed resilient during the pandemic, posting a 26.3 percent jump in its profit in the nine months ending September to ₱625.7 million, driven by a higher net interest income and reduced interest expenses.

Revenues from the sale of foreclosed assets soared from ₱50.8 million to ₱231million with the partial re-opening of the economy.

 

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