SEC approves Bank of Commerce IPO, San Miguel bond offer

MANILA, Philippines — Conglomerate San Miguel Corp. and its affiliate bank, Bank of Commerce, have received the approval of corporate regulators for their planned public offerings that include a bond sale and a maiden share offer.

In a statement on Wednesday, the Securities and Exchange Commission said it approved the planned initial public offering of Bank of Commerce, which is eyeing to raise P3.4 billion by selling 280.6 million common shares at an offer price of P12.5 apiece.

If investor interest proves robust, the lender has an overallotment option of 42.1 million shares which could likely push the company’s fundraising to P4.2 billion.

The proceeds will be used to upgrade Bank of Commerce’s automated teller machine fleet and its core banking system. The bank has a network of 140 branches and 257 ATMs.

Excess from the proceeds will be used by the bank to acquire investment securities to meet regulatory liquidity requirements.

Bank of Commerce is scheduled to list on the Philippine Stock Exchange on March 23, with its initial public offering running from March 7 to 15.

Meanwhile, regulators also cleared San Miguel’s P60 billion fixed-rate bond offering, which may be floated in one or more tranches in three years.

For the first tranche, the Ang-led firm will offer to the public up to P25 billion of Series J bonds due in 2027, with an overallotment option of up to P5 billion of seven-year Series K bonds due 2029. If investor investment is strong, net proceeds from the offer could amount to P29.63 billion, which will be used to pay short-term loans and “for other general corporate purposes.”

The first round of the bond sale will be offered at face value and will be listed on the Philippine Dealing and Exchange Corp. on March 1.