th images menu user export search eye clock list list2 arrow-left untitled twitter facebook googleplus instagram cross photos entrep-logo-svg

BPI Offering Php50 Billion Worth of New Shares at More Than 20% Discount

Issue is available only to BPI shareholders on record as of April 6
By Lorenzo Kyle Subido |
BPI Offering Php50 Billion Worth of New Shares at More Than 20% Discount

 

The Bank of the Philippine Islands (BPI) is holding a stock rights offering where it aims to raise Php50 billion by selling over 558 million new shares priced at Php89.50 apiece.

 

The offer price is 24.9 percent lower than BPI’s closing share price last Monday, April 2, which stood at Php111.80 per share. In a disclosure to the Philippine Stock Exchange (PSE) dated April 2, the company revealed that the Php89.50 offer price “represents a 21.6-percent discount to the volume-weighted average price of the Bank’s common shares on the PSE for each of the 15 consecutive trading days immediately prior to (and excluding) the Pricing Date”, which was last March 27.

 

As a stock rights offering, the discounted shares are only available to BPI’s existing shareholders, specifically those that are on record as of April 6. The ex-date for the offering is today, April 3. Each shareholder is entitled to a new share for every 7.0594 shares they currently hold.

 

The bank will use the proceeds from the stock rights offering to primarily fund the company’s loan products, specifically those offered to consumers and micro, small and medium business owners. It will also use some of the proceeds to expand its branch network and digital infrastructure.

 

BPI is the country’s third largest universal bank in terms of assets, deposits and capital as of end-2017, according to data from the Bangko Sentral ng Pilipinas. It operates 942 branches nationwide, and it is one of the major businesses under the Ayala group of companies. It ended 2017 with a net income of Php22.7 billion, slightly here than the Php22.3-billion figure the year before.

 

The stock rights offering will last from April 16 to April 25. Interested investors are urged to view the offer’s prospectus, which can be found in the company’s website.

 

BPI Capital Corp. will serve as the sole domestic manager, bookrunner and underwriter of the offering. Deutsche Bank, Goldman Sachs and J.P. Morgan will serve as joint international bookrunners and underwriters.

 

 

*****

 

 

Lorenzo Kyle Subido is a staff writer of Entrepreneur PH

Latest Articles

Kris Aquino Namedrops Products in Her Recent Rants: Is This Good or Bad for the Brands?

A public relations expert weighs in on how the surprise mentions will impact brands

byElyssa Christine Lopez | April 23, 2018 20:00:00

AirAsia’s PH Unit Eyes 30% Capacity Expansion to Serve ASEAN’s ‘Digital Nomads’

The low-cost airline is preparing for an IPO by end of the year

byLorenzo Kyle Subido | April 23, 2018 10:00:00

Looking for Office Space? Here's a Field Guide to Serviced Offices and Coworking Spaces in BGC, Makati and Ortigas

These coworking spaces and serviced offices have caught the attention of global corporations

byLorenzo Kyle Subido | April 23, 2018 09:00:00

6 Reasons Goal Setting Is a Complete Waste of Time for New Entrepreneurs

Contrary to what you've always been told, goal setting isn't all that important for new...

byLucas Miller | April 23, 2018 06:00:00

Ask the Relationship Expert: 'How Do I Reconnect With My Partner When We're Both So Busy?'

A relationship between two entrepreneurs doesn't leave much time for togetherness

byMarla N. Mattenson | April 23, 2018 02:00:00

This Pinay Started Her Own Clothing Business With Php50,000

Samantha Dizon is the woman behind Candid Clothing

byMixi Ignacio for Cosmo.ph | April 23, 2018 00:00:00

4 Common Misconceptions About Cloud Computing and Small Businesses in PH

SMEs need cloud services as much as other businesses do, says Amazon Web Services

byPauline Macaraeg | April 22, 2018 09:00:00

4 Ways to Inspire Your Team Every Single Day

Being inspired at the beginning or end of something is easy. Staying inspired is the true challenge

byDavid Meltzer | April 22, 2018 06:00:00

Here's the Secret to Really, Really Enjoying Your Summer Vacation

Follow these three tips and your time away will be easy-breezy and actually relaxing

bySyed Balkhi | April 22, 2018 02:00:00

Why Elon Musk Hates Meetings

He called them a 'blight' on effective company operations

byNina Zipkin | April 22, 2018 00:00:00

We Can Soon Drive From Luzon to Mindanao With Gov’t Plan to Build 8 Bridges Linking Major Islands

Duterte administration to spend Php269 billion for the project, says DOF

byPauline Macaraeg | April 21, 2018 09:00:00

How to Deal With Negative People Who Just Aren't Going Away

Real life includes people who scorn your optimism because they don't have dreams of their own

byDeep Patel | April 21, 2018 06:00:00
Close