MANILA, Philippines - Commercial lender Asia United Bank (AUB) of the Rebisco Group has formalized its intent to list in the local bourse, potentially making it the second firm to conduct an initial public offering (IPO) this year.

The bank is seeking the approval of the Securities and Exchange Commission, the country’s corporate regulator, for the registration of 342.857 million shares in the local bourse.

AUB said 102.857 million shares would be subject to a public share sale at a maximum price of P110 each. Hence, it can raise as much as P11.314 billion in fresh capital.

AUB said it needs P5.5 billion for its expansion plans and general corporate purposes.

“AUB has evaluated its capital in light of its business strategy and determined that the primary offer would further solidify the bank’s capital adequacy and financial strength and, more importantly, allow AUB to pursue its strategic growth initiatives,” the lender said.

Specifically, the strategic growth initiatives include “the continued expansion of its branch network via organic and inorganic means.”

As of end-2012, the 15-year-old bank had 107 branches.

The lender also plans to “expand its credit and balance sheet to meet increased demand from the growing economy.”

Its information technology infrastructure will also be upgraded to enhance the core banking, enterprise content management, workflow systems, electronic and mobile banking distribution channels.

AUB said it would enter into partnerships for financial payments including debit, credit and prepaid cards.

Joint bookrunners and joint lead managers for the IPO are UBS Ag (Hong Kong branch) and Credit Suisse (Singapore) Ltd.

In June, AUB completed the integration of the 28-branch network of Asiatrust Development Bank Inc., which specializes in the small and medium enterprises market.

AUB is a medium-sized commercial bank, with total assets worth P50 billion and capital funds of over P9 billion at the end of 2011. Its return-on-equity ratio is at 12 percent, ranking it among the most profitable commercial banks in the country.

AUB has been in a selective acquisition mode since 2009. It took over Rural Bank of Angeles, which has four branches and two satellite offices in Pampanga, boosting its presence outside Metro Manila. Its acquisition of the Cooperative Bank of Cavite is awaiting BSP approval.

AUB is owned by a consortium of Filipino industrialists, Taiwanese investment banks and Singapore venture capitalists. Its majority stakeholder is Republic Biscuit Corp., the Philippines’ leading manufacturer, distributor and exporter of snack food products.

Controlling a quarter of total equity is Kuo Yu Philipppines Holdings Inc., another 20-percent stake is held by Lambda Holdings Corp., while Singapore-based Magis Equity Ventures has a minority stake.