THE Securities and Exchange Commission (SEC) on Wednesday said it “has considered favorably” the public offerings of Bank of Commerce and San Miguel Corp. (SMC).
“In its Feb. 15 meeting, the Commission En Banc resolved to render effective the registration statements of Bank of Commerce and SMC covering 1,403,013,920 common shares and up to P60 billion in fixed-rate bonds under shelf registration, respectively, subject to their compliance with certain remaining requirements,” the SEC said in a statement.
BANK OF COMMERCE IPO
SMC subsidiary Bank of Commerce is planning a P3.5-billion initial public offering (IPO), while SMC will be offering up to P30-billion fixed-rate bonds in an initial tranche of the shelf-registered bonds.
Bank of Commerce will be selling to the public over 280.6 million common shares for P12.50 at most. The SEC said the company might net P3.34 billion from the offer.
According to the latest timetable submitted to the SEC, Bank of Commerce plans to conduct its IPO from March 7 to 16, while its listing at the main board of the Philippine Stock Exchange is slated for March 23.
Proceeds from Bank of Commerce’s IPO will be used to fund its lending activities, acquisition of investment securities, and to finance capital expenditure requirements, which involve upgrading its ATM fleet and its core banking system.
As of Sept. 30, 2021, Bank of Commerce had 140 branches and 257 ATMs.
The company tapped BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc. (PCCI), and PNB Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.
SMC BOND OFFERING
SMC can issue the P60-billion fixed-rate bonds in one or more tranches within three years. The initial tranche is worth 30 billion, comprised of P25-billion five-year Series J bonds due 2027 and an overallotment option of up to P5-billion seven-year Series K bonds due 2029.
According to the latest timetable submitted to the SEC, the first tranche bonds will be offered at face value and will be listed at the Philippine Dealing & Exchange Corp. on March 1.
Should the overallotment option be exercised, SMC may net up to P29.63 billion from the offer. Proceeds will be used to refinance short-term loans of the company as well as for general corporate purposes.
SMC engaged BDO Capital and China Bank Capital to be the offer’s joint issue managers and will be joined by BPI Capital Corp., PCCI, PNB Capital, RCBC Capital Corp., and SB Capital Investment Corp. as joint lead underwriters and bookrunners of the transaction. — Keren Concepcion G. Valmonte