SMC bank allots P1-M IPO shares per small investor

SAN MIGUEL Corp. (SMC) affiliate Bank of Commerce has placed the maximum subscription amount for local small investors who will participate in its initial public offering (IPO) at P1 million per investor.

The IPO will have a primary offer of 280,602,800 common shares, with an offer price of P12 per share, or an offering size of about P3.37 billion.

In a listing notice on Wednesday, Bank of Commerce said that it would give priority to accepting smaller subscription orders ahead of larger orders.

The bank tapped Philippine Commercial Capital, Inc. (PCCI) as the financial advisor and issue coordinator, together with BDO Capital & Investment Corp. China Bank Capital Corp., PCCI, and PNB Capital and Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners.

Net proceeds from the 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.

Bank of Commerce is licensed by the Bangko Sentral ng Pilipinas (BSP) and has been operating since 1963. In 2008, it became an affiliate of SMC.

The bank provides “innovative banking solutions and a complete range of products and services in deposit, commercial loans, credit card services, consumer banking, corporate banking, treasury, asset management, transaction banking, and trust and investments.”

Separately, SMC said in a statement on Wednesday that Bank of Commerce “is ramping up investment in technologies to optimize operations and further improve customer experience across multiple channels, ahead of a resurgent economy post-pandemic.”

It said the move comes as the bank completed systems upgrade of key services such as treasury, trust banking and anti-money laundering.

SMC said the bank has also invested in improving its digital capabilities through its enhanced mobile banking and web platform, which are part of its P1.2 billion spending since 2019.

“The banking sector is essential to our country’s post-pandemic recovery, and we want Bank of Commerce to play a more significant role in San Miguel’s overall efforts to help boost our economy,” SMC President and Chief Executive Officer Ramon S. Ang said.

He said the upgrade of the bank’s information technology and digital infrastructure “is key to meeting the challenges of banking in the new normal,” while serving the needs of retail customers, small and medium-sized enterprises, and corporate clients.

“We believe in the bank’s strong potential, that’s why we are investing to upgrade and enhance its capabilities to serve more clients,” Mr. Ang said.

Bank of Commerce President and Chief Executive Officer Michelangelo R. Aguilar said: “We are committed to embracing new technologies to strengthen our core functions and governance, unleash capabilities to integrate our services, realize operational efficiencies, and reduce transaction costs.  Ultimately, this will redound to providing a exceptional customer experience in the new normal.”

The bank has also set aside P1 billion to upgrade its core banking system and refresh its ATM fleet across the country, including the installation of additional machines at strategic offsite locations starting this year, the SMC media release said.

Bank of Commerce has a network of 140 branches and 261 automated teller machines nationwide. — Luisa Maria Jacinta C. Jocson