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Business

AUB eyes up to P11.3 B from IPO

Zinnia B. Dela Peña - The Philippine Star

MANILA, Philippines - Asia United Bank (AUB), a medium-sized lender controlled by leading snack food maker Rebisco Biscuit Corp., is looking to raise up to P11.3 billion from a planned initial public offering (IPO) of shares.

Sources said AUB is selling up to 102.857 million common shares for as much as P110 per share.

Proceeds from the offering will be used to further strengthen AUB’s capital adequacy and fund the continued expansion of its branch network and upgrade of its information technology infrastructure.

UBS will serve as sole global coordinator as well as lead bookrunner and manager alongside Credit Suisse.

AUB has an authorized capital of 500 million shares, 240 million of which are outstanding.

The 15-year old bank also plans to use proceeds for acquisition of restricted branch licenses and general business purposes, particularly growing its interest-earning asset base as part of efforts to further widen its presence in the banking industry.

AUB ended 2012 with a capital adequacy ratio (CAR) of 15 percent, which is above the mandated 10 percent and a total branch network of 107 with the acquisition of the Cooperative Bank of Cavite (renamed Cavite United Rural Bank) and Asiatrust Development Bank.

A joint venture between a consortium of reputable Filipino industrialists led by Rebisco founder Jack Ng and Taiwanese investment banks, AUB plans to open 45 more branches this year and double its branch network by 2015.

The bank posted a net income of P1.36 billion last year, up 20 percent from P1.14 billion in 2011 on the back of higher trading and lending activities.  Total resources grew 27 percent to P63.35 billion while deposits expanded by 23 percent to P46.97 billion due to intensive deposit-generation initiatives.      

Ng also has interests in the power generation business (a 135-megawatt coal fired termal plant in Iloilo in partnership with A. Brown and the Ayala Group). He also owns Oakwood Ortigas Center.

 

ASIA UNITED BANK

ASIATRUST DEVELOPMENT BANK

AUB

BROWN AND THE AYALA GROUP

CAVITE UNITED RURAL BANK

COOPERATIVE BANK OF CAVITE

CREDIT SUISSE

JACK NG AND TAIWANESE

OAKWOOD ORTIGAS CENTER

REBISCO BISCUIT CORP

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