UBS exercises overallotment option in AUB shares

MANILA, Philippines - Asia United Bank (AUB) reported yesterday  that  UBS AG, its sole global coordinator, has partially exercised its overallotment option involving 3.34 million shares.

AUB investor relations officer Herminia Musico said  the payment for and delivery of the optional shares by UBS will be made not later than June 19.

In an international bookbuilding early last month, AUB’s orderbook was five times oversubscribed.

AUB conducted an initial public offering (IPO) and listed 320 million shares in the Philippine Stock Exchange (PSE) last May. Of this, the bank offered 88 million primary shares, including an oversubscription option of eight million shares at P95 apiece.

Proceeds from the IPO amounting to more than P8 billion would be used for AUB’s branch expansion and upgrade of information technology infrastructure.

AUB plans to go into investment banking and participate in infrastructure and power projects.

The lender is also looking for an acquisition this year, targeting a Luzon-based bank that will increase its customer base.

AUB aims to increase its current 117-branch network to 250 in the next five years to provide access to a broad base of investors in line with its goal of becoming one of the top 10 domestic banks in the Philippines.

AUB also expects to grow its loan portfolio 30 percent every year, faster than the average loan growth in the industry at 15 percent per annum.

AUB is owned by a consortium of Filipino industrialists, Taiwanese investment banks and Singapore venture capitalists. Republic Biscuit Corp., the Philippines’ leading manufacturer, distributor and exporter of snack food products, owns 44 percent of the bank.