MANILA Asia United Bank (AUB), the second company to go public this year, will use the projected P9.68 billion proceeds from the initial public offering (IPO) to expand branch network in its bid to become one of the top 10 banks in the country.
We have capital, (but) we raise (more) capital to fuel growth. With IPO (initial public offering), we intend to pursue growth, we have a bullish economic situation, said First Vice President Andrew Yap in an investors briefing.
Yap said AUB, a medium-sized commercial bank, plans to double its branch network from the current 114 branches to 250 over the next five years.
In a span of three years, AUB bought the Rural Bank of Angeles, boosting its presence outside Metro Manila; Asiatrust Development Bank; and Cooperative Bank of Cavite, which was renamed Cavite United Rural Bank.
He said UAB also expects more growth opportunity when its universal bank license becomes effective in the fourth quarter of 2013. Such license will allow the Bank to further expand its market and business products.
The Bank will expand into new markets especially retail to increase customer penetration and facilitate cross-selling within and across business segment, he added.
UAB will also utilize IPO proceeds for acquisition or payments for branch licenses, undertake information technology (IT) projects useful especially to mid-sized corporates and small and medium enterprises and for general corporate purposes.
For his part, company chairman Abraham Co told reporters they intend to grow the banks total assets to P250 billion to P300 billion.
AUBs total assets amounted to P69 billion in the first quarter of this year, 38 percent higher than P50 billion during the same period last year.
Its return-on-equity ratio rose to 18.3 percent from 15.5 percent, ranking it among the most profitable commercial banks in the country.
The Bank's first-quarter net income also increased 62 percent to P523 million from P323 million, driven by higher deposits generated, loans booked and trading income.
AUB will sell to the public up to 80 million primary shares, comprising up to 25 percent of its companys enlarged share capital, for P80 to P110 apiece.
It will kick off domestic roadshow on April 26 and international roadshow on April 29 to May 2 to woo investors for IPO.
(We will conduct the overseas roadshow) in Hong Kong, Singapore and England, bared Co.
UBS serves as the sole global coordinator of the IPO. UBS, along with Credit Suisse, also serve as joint bookrunners.
UAB shares will be listed on the Philippine Stock Exchange (PSE) on May 17. It will be the second IPO in the stock market this year after the Philippine Business Bank.
Snack food maker Rebisco Biscuit Corp. controlled by businessman Jacinto Ng owns 70 percent of the AUB stocks, while the rest owned by Magis Equity Ventures Pte. Ltd. and Kuo Yu Philippines Holdings. (PNA)