Citystate Savings sets stock rights offer for 25-M shares

Citystate Savings Bank Inc., a thrift bank listed on the Philippine Stock Exchange, has approved the sale of up to 25 million of its shares through a stock rights offering.

In a filing with securities regulators, Citystate said the shares will be taken from its authorized but unissued capital stock.

Citystate said the offer price, payment terms and the offering period of the rights issue will be set at a later date. The bank will likewise set the record or cut-off date after securing listing and other regulatory approvals.

Citystate was formed in 1997 by a group of Filipino businessmen led by Antonio L. Cabangon-Chua and Alfonso G. Siy.

Cabangon-Chua is the chairman of the ALC Group of Companies, a diversified conglomerate involved in insurance and insurance brokerage through the Fortune Group of Companies and motor vehicle dealership through Gencars Inc., the country’s leading distributor of Isuzu vehicles, as well as real estate investments.

Siy, on the other hand, is president of the Fortune Net Group of Companies, Ever Fortune Realty Group of Companies and executive vice president of Ever Fortune Thermoplas Corp.

Citystate’s principal foreign shareholder group is Citystate Holdings Pte. Ltd. (CHPL), a Singaporean investment and financial holdings corporation. CHPL’s investment in the bank was made through its wholly-owned subsidiary, Newstate Investment Holdings Pte. Ltd.

Citystate was incorporated primarily to service the small and medium enterprises (SME) sector. It was envisioned to become a major thrift bank and a strategic partner in the development of the SME market in the Philippines.

At present, the bank has a total of 12 branches, including its head office in Pasig. It has nine branches located within Metro Manila, two branches in the province of Bulacan and one in Cebu City.

Citystate was awarded the highest ATM approval transactions for the year 2002 and presented the Service Award by BancNet Inc., indicating high ATM efficiency rating.