Union Bank sets SRO price at P64.81/share
By JAMES A. LOYOLA
Union Bank of the Philippines has priced its P40 billion call rights offering at P64.81 per share, near the bottom of the indicative price range of P64.55-73.78 per share .
In a statement to the Philippine Stock Exchange, the bank said the offer price was determined based on the 15-day volume-weighted average price of Union Bank common stock traded on the stock exchange, subject to a 30% discount.
The bank also set the rights ratio at 1 rights share for every 2.4708 shares held, which translates to 617.19 million rights shares based on its outstanding capital of $1.52 billion. shares. He had allocated up to 800 million shares for the SRO.
The ex-rights date for the SRO has been set for April 6 while the record date will be April 11, 2022. The offer period will run from April 25 to May 6, 2022.
Union Bank said it intends to use proceeds from the rights offering primarily to partially fund the acquisition of Citigroup, Inc.’s consumer banking business in the Philippines, and if it remains a net amount of proceeds, for general purposes.
CLSA Exchange Capital, Inc. and ING Bank NV, Manila Branch, have been selected by Union Bank to be joint global coordinators and joint national underwriters of the rights offering.
UBP reported a 9% improvement in net profit to 12.6 billion pesos in 2021, translating into an industry-beating return on equity of 12.0%.
In an earlier statement to the PSE, the bank said its net income was at a record high of 45.1 billion pesos, up 7% year-on-year (YoY).
Net interest income increased by 4% to P29.8 billion due to the continued increase in net interest margins (up 9 basis points to 4.6%). Lower funding costs resulting from the record increase in CASA deposits supported margin growth.
Non-interest income also increased by 14% to reach 15.3 billion pesos. This is due to higher fees, service charges, as well as foreign exchange gains and trading income.
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