MANILA, Philippines — Aboitiz-led Union Bank of the Philippines has completed its stock rights offering that was meant to raise cash for the company’s capitalization and additional funding for its nascent digital bank.
In a statement on Monday, UnionBank said it raised P12 billion from the sale of approximately 210.97 million common shares at a price of P56.88 each.
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The bank said the offering was “almost fully subscribed” at the first round of the offer, an indication of strong investor demand for the offering. The second round, meanwhile, was “heavily oversubscribed”, the bank added.
“Proceeds from the SRO will be used to solidify the Bank’s capital adequacy and financial strength, and to execute its strategic growth initiatives,” UnionBank said.
“Specifically, UBP will deploy additional capital to UnionDigital, support loan availments by customers of both retail loans and corporate and commercial loans,” it added.
On Monday, shares in UnionBank shed 3.80% to close at P92.35 apiece.