SEC approves Bank of Commerce IPO

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the twin capital raising activities of San Miguel Corp., the country’s diversified conglomerate.

SEC approved the P3.5 billion initial public offering of Bank of Commerce, a subsidiary of SMC, and the fixed-rate bond offering by SMC of up to P60 billion under a shelf registration program with the regulator.

Bank of Commerce will offer to the public up to 280.6 common shares priced at P12.50 per share for a total offering of P3.5 billion, proceeds of which would be used to fund the bank’s lending activities and finance capital expenditure requirements. The bank is eyeing to do the IPO in the first quarter.

This is in connection with the bank’s move to upgrade its automated teller machine (ATM) fleet and core banking system. Any remaining proceeds will be used for the acquisition of investment securities to meet regulatory liquidity requirements.

Bank of Commerce provides banking products and services in deposit, commercial loans, credit card services, consumer banking, corporate banking, treasury, asset management, transaction banking, and trusts and investments. It has a network of 140 branches and 257 ATMs as of September 30, 2021.

The IPO will run from March 7 to 15, with listing on the PSE scheduled for March 23, according to the latest timetable submitted by the bank to the SEC.

Bank of Commerce tapped BDO Capital & Investment Corp., China Bank Capital Corp, Philippine Commercial Capital Inc. (PCCI), and PNB Capital Investment Corp. as the joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

For the fixed rate bonds, SMC is looking to issue P60-billion fixed-rate bonds in one or more tranches within three years.

For the first tranche, the listed conglomerate will offer  up to P25 billion of five-year Series J bonds due 2027, with an over-allotment option of up to P5 billion of seven-year Series K bonds due 2029.

SMC expects to raise up to P29.6 billion from the initial offer, to be used for the refinancing of short-term loan facilities and for other general corporate purposes.