The Securities and Exchange Commission (SEC) has approved the P3.5-billion initial public offering (IPO) of Bank of Commerce and San Miguel Corp.’s (SMC) P60-billion fixed-rate bond offering under shelf registration.
The SEC said it made the approval during its February 15 en banc meeting.
Bank of Commerce will offer to the public up to 280.6 million common shares priced at up to P12.50 per share. The shares will be listed on the main board of the Philippine Stock Exchange.
The bank expects to net about P3.34 billion from the offer, proceeds of which will be used to fund the bank’s lending activities and finance capital expenditure requirements, in connection with upgrading its automated teller machine fleet and core banking system.
Any remaining proceeds will be used for the acquisition of investment securities to meet regulatory liquidity requirements.
Bank of Commerce is a unit of San Miguel and has a network of 140 branches and 257 ATMs as of September 30, 2021.
The IPO will run from March 7 to 15 and the listing on the PSE is scheduled for March 23, according to the timetable submitted by the bank to the SEC.
Bank of Commerce engaged BDO Capital and Investment Corp., China Bank Capital Corp., Philippine Commercial Capital Inc. and PNB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.
Meanwhile, the P60 billion fixed-rate bonds in shelf registration of San Miguel may be issued in one or more tranches within three years.
For the first tranche, the conglomerate will offer to the public up to P25 billion of five-year Series J bonds due 2027, with an overallotment option of up to P5 billion of seven-year Series K bonds due 2029.
Proceeds will be used for the refinancing of short-term loan facilities of the company and for other general corporate purposes.
The bonds comprising the first tranche will be offered at face value and will be listed on the Philippine Dealing and Exchange Corp. on March 1, based on the latest timetable sent to the SEC.
San Miguel tapped BDO Capital and China Bank Capital as joint issue managers for the offering. They will work alongside BPI Capital Corp., PCCI, PNB Capital, RCBC Capital Corporation and SB Capital Investment Corporation as joint lead underwriters and bookrunners.