Listed Philippine Business Bank (PBB) has raised another P500 million through the sale of shares to existing shareholders to raise much needed capital in its bid to transform into a universal bank in the next two years.
The bank, led by business tycoon Alfredo Yao, offered one rights share for every 4.6428 common shares held by existing shareholders via a stock rights offering (SRO).
The commercial bank offered 50 million common shares at a price of P10 per share.
“The proceeds from the SRO will be primarily used to increase the equity to comply with the minimum capital requirement for a universal bank license and for other general corporate purposes including but not limited to investments in government securities or corporate bonds, loans requirements, maintenance of capital expenditures, operating expenses, and other opportunities,” the bank said earlier.
The actual subscription of the rights shares will become effecting upon listing on the Philippine Stock Exchange (PSE) on March 31.
PBB successfully raised P1.25 billion via the private placement of 125 million shares at P10 per share. The Yao family, led by businessman Alfredo Yao, acquired 75.79 million shares while the family-owned Zest-O Corp. purchased 49.21 million shares.
Last year, the board of directors as well as the stockholders of PBB approved the increase in its authorized capital stock to P15 billion consisting of 1.37 billion common shares and 130 million preferred shares with a par value of P10 per share from P10 billion divided into 870 million common shares and 130 million preferred shares valued at P10 each.
To support the capital increase, the Yao family and Zest-O fully paid P1.25 billion subscription in capital stock via the private placement.
PBB was incorporated in 1997 to engage in the business of thrift banking.
It provides banking services and products including cash management, retail and corporate lending, deposit products, international trade finance, and treasury and trust products.
Since 2014, PBB has entered into three purchase agreements involving Rural Bank of Kawit, Bataan Savings and Loan Bank, and Insular Savings Bank.
