Metrobank prices rights offer at P75 per share
MANILA (Philippines News Agency) — Metropolitan Bank & Trust Company (Metrobank) has priced its stock rights offer at PHP75 per rights share, as it aims to raise PHP60 billion in fresh capital to grow its loan portfolio and support other strategic business initiatives.
Metrobank told the local bourse the offer price is based on a 22-percent discount to the 10-day volume-weighted average price of Metrobank common shares listed on the Philippine Stock Exchange.
The bank will offer 799,842,250 common shares to eligible shareholders who are entitled to subscribe to one rights share for every 3.9760 common shares held as of the record date of March 21, 2018.
The offering will run from March 22 to April 4.
Metrobank said proceeds from the offering would be used to finance the expansion of its loan portfolio and acquisition of 40-percent stake in credit card provider, Metrobank Card Corporation, thereby raising its ownership to 100 percent.
Over the last six quarters, Metrobank has consistently delivered over 20-percent loan growth, faster than the industry average.
Its total asset base is currently the second largest among Philippine banks, having expanded by 16 percent to PHP2 trillion as of September 30, 2017.
“The capital raising exercise is expected to enable the Bank to pursue these business prospects to sustain the loan growth momentum, leveraging on the Bank’s sales and distribution network that has rapidly expanded in the preceding years,” said Metrobank.
The bank believes that the robust growth of the Philippines will continue to support the prospects for accelerated loan expansion across the various segments of the economy.
Metrobank seeks to capitalize on the growth opportunities of large cap corporates and especially its core franchise, the middle market and small to medium enterprises (SME) segments.
“Rising per capita levels also bode well for the potential in the growing consumer space, specifically in credit cards, auto loans and home mortgage,” it added. (PNA)