Bank of the Philippine Islands (BPI) has completed its stock rights offer (SRO), raising P50 billion to fund its business operations and expansion.
In a disclosure to the local bourse on Wednesday, May 2, the Ayala-led BPI said that it has completed its P50-billion rights offering, which sold 558.7 million common shares priced at P89.50 apiece.
Eligible shareholders are entitled to subscribe to a share for every 7.0594 common shares as of record date April 6.
The rights offer was met with “strong support from both domestic and foreign shareholders,” resulting in an oversubscription by 22.3% as of the close of offer on April 25.
BPI’s major shareholders, including Ayala Corp., applied to subscribe for more than their pro-rata entitlements under the terms of the rights offer, the lender added.
According to BPI in an earlier disclosure, the proceeds from the capital raising exercise will be used to fund the expansion of its loan portfolio particularly in the consumer, small to medium enterprises and microfinance segments.
The proceeds will also finance the expansion of its delivery infrastructure via investments in digitalization as well as additional branches of BPI, BPI Family Bank and BPI Direct BanKo. — Karl Angelo N. Vidal