Philippine Business Bank completes P500-million stock rights offering

PHILIPPINE Business Bank, Inc. (PBB) has raised P500 million from its stock rights offering, it said on Monday.

The bank said in a disclosure to the local bourse that it has completed its offering of 50 million shares priced at P10 apiece.

The actual subscription of the rights shares will become effective only upon their listing on the Philippine Stock Exchange on March 31. The offer period ran from March 17 to 23.

Eligible shareholders were entitled to subscribe to a share for every 4.6428 common shares as of the March 10 record date. The ex-rights date was March 7.

The bank previously said proceeds will be used to increase its capitalization as part of its goal to get a universal banking license and expand its main businesses.

“The proceeds from the offer will be used primarily to increase PBB’s capital to partially comply with minimum capital requirement for a universal bank license and for other general corporate purposes including but not limited to investments, loans, maintenance capex, operating expenses, and other opportunities,” it said.

“The increase will also enable PBB to meet the growing demands of the banking business and positions the bank to exploit opportunities as the economy rebounds,” it added.

The bank said last month that it is aiming to obtain a universal banking license from the Bangko Sentral ng Pilipinas by 2024 or 2025.

PBB’s net income rose by 15.2% to P926.6 million in the first nine months of 2022.

Its shares rose by 27 centavos or 2.85% to end at P9.75 apiece on Monday. — Luisa Maria Jacinta C. Jocson