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Business

Bank of Commerce shares rally during first bank IPO in 9 years

Ramon Royandoyan - Philstar.com
Bank of Commerce shares rally during first bank IPO in 9 years
Bank of Commerce looked to raise P3.37 billion from its IPO.
Philstar.com / Deejae Dumlao

MANILA, Philippines — Investors gave Bank of Commerce a warm welcome on its listing day on Friday, with shares gaining almost 2% during the first stock market debut of a bank in nine years.

Shares in the banking arm of conglomerate San Miguel Corp. rose as high as 4.8% before paring those gains to close up 1.83% from its offer price of P12 per share.

Sought for comment, Luis Limlingan, head of sales at local brokerage Regina Capital, noted three reasons for Bank of Commerce's successful launch: leverage on San Miguel’s ecosystem, strategically located automated teller machines and branches, and its high current account and savings account ratio.

"Investors warmly welcomed the listing of BNCOM, an affiliate of SMC, which intends to use its IPO proceeds mainly to beef up its lending activities, fund its capex (ATM refresh, system upgrade), and acquire investment securities. Overall, the general theme of the use of proceeds is to further deepen its position in the industry and solidify its operations," he said in a Viber message.

Bank of Commerce looked to raise P3.37 billion from its IPO.

April Lee Tan, head of research for listed company COL Financial, believes the company’s offer was priced reasonably.

"Hard to say if investors flocked to the IPO. I think that the IPO was priced well and investors appreciated the bank's strong balance sheet and potential to grow by capitalizing on the vast network of the SMC group," she said in a Viber message.

BANK OF COMMERCE

IPO

SAN MIGUEL CORP.

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