SEC okays Phl Business Bank IPO

MANILA, Philippines - The Securities and Exchange Commission (SEC) has allowed Philippine Business Bank (PBB) to list in the local bourse.

The thrift lender seeks to raise as much as P4.25 billion through an initial public offering (IPO), the corporate regulator said.

In an en banc decision, the SEC approved the application of PBB to list 343.333 million shares. It will be the fourth IPO this year.

PBB will sell 101.333 million shares to the public at a maximum price of P41.94 per share.

“The shares will be issued upon approval by the SEC of the increase in the authorized capital stock to P10 billion from P3 billion and will be listed and traded on the first board of the Philippine Stock Exchange,” the SEC said.

PBB said it plans to list in the local bourse late this month.

Controlled by the family of Ambassador Alfredo M. Yao, PBB was registered as Total Savings Bank in 1997. That same year, the company changed its name to PBB.

The Yao family also owns juice drinks firm Zest-O and budget carrier Zest Airways.

From one branch in 1997, PBB has established 15 branches in Metro Manila and adjacent provinces in two years of operations.

To date, the lender said it has grown its network to a total of 72 branches, of which 37 are located in Metro Manila and 35 are located in key urban locations in various provinces.

“Each of these branches are positioned in business, commercial and industrial areas, particularly those which exhibit a number of small and medium enterprises, the bank’s target segment,” PBB said.

Based on the assumed maximum offer price, PBB said gross proceeds will amount to P4.25 billion, with P239.31 million allotted for various expenses.

PBB said it will raise P4.01 billion in net proceeds.

Fresh capital will be used to open five new branches in Metro Manila early next year at P10 million per branch.

It will also open 10 provincial branches in areas like Zamboanga, Tuguegarao, Isabela, Davao and Leyte at a cost of P5 million per branch.

The bulk of the proceeds or P3.61 billion will be used for general corporate purposes next year, PBB said.

In the first half, PBB recorded a total comprehensive income of P202.64 million, almost triple the P82.97 million in the same period last year on the back of P823.4 million in interest income.