Maybank to list 10% of its shares

MANILA, Philippines - Maybank Philippines Inc. (MPI) willlist 10 percent of its shares in the local bourse to comply with existing laws.

Visiting Malayan Banking  Berhad (Maybank) president and CEO Dato’ Sri Abdul Wahid Omar, however, said that the listing of MPI’s 10-percent shares won’t likely happen within the next two years.

The Maybank executive pointed out that they would have to “grow” the bank first before the initial public offering (IPO) to ensure the success of the exercise.

“We have three years to comply with the requirement. So our goal is to grow the business, to grow the franchise,” Wahid said.

MPI president Herminio Famatigan Jr. said “we don’t see it (IPO) happening in the next two years.”

Under the Foreign Bank Liberalization Act of 1994 or Republic Act 7721, local banks which are majority-owned by a foreign entity should offer at least 10 percent of their shares to the public.

Late last year, the Bangko Sentral ng Pilipinas (BSP) has set the parameters on this provision and gave affected banks three years to comply with the law.

Currently, the Maybank Group is Malaysia’s regional financial services leader with an international network of over 2,200 offices in 20 countries. 

In the Philippines, Maybank started operations in August 2000 when it became the first foreign bank to have almost 100-percent ownership stake in a Philippine commercial bank, Maybank Philippines Inc.

To further strengthen its operation in the Philippines, Maybank infused an additional $100 million into MPI to enable it to grow its branch network to 200 in 2018.

The additional capital infusion would also allow MPI to offer new products and services to its clients.