Phil Business Bank pushes back IPO schedule

Posted at 11/14/12 8:06 AM

MANILA, Philippines - The planned initial public offering (IPO) of Philippine Business Bank Inc. (PBB), the thrift bank unit of Amb. Alfredo Yao’s Zest-O Group, would have to wait until the first quarter next year, according to the issuer’s underwriter.

Maybank ATR Kim Eng Capital Partners Inc. managing director Roberto Benares said the delay was due to the expiry of the 135-day effectivity period of the bank’s financial statements, a pre-requisite for share sales.

Benares said the annual financial statements must be current within 135 days of filing the application.

“In the case of PBB, it used June financial statements so even if its listing application obtains the stock exchange’s approval on Wednesday, the registration statement is already moot,” Benares said.

The Securities Regulation Code states that “at the time a registration statement is to become effective, the financial information therein must be as of a date within 135 days from effective date.”

PBB secured Friday the Securities and Exchange Commission’s nod to raise up to P4.25 billion from a maiden share sale comprising 101.33 million primary common shares at a maximum price of P41.94 apiece.

The share sale would have brought 29.5 percent of the lender’s issued and outstanding capital post-IPO to public hands.

PBB was supposed to list on the first board of the local bourse on Nov.23.

Proceeds from the offering will be used to open new branches, improve the bank’s information technology, infrastructure system, acquire other branch licenses and for other general purposes.

The bank has 72 branches to date, of which 37 are in Metro Manila where branch expansion is restricted. These branches are positioned in business, commercial and industrial areas particularly those with a critical mass of small and medium enterprises, the bank’s target segment.

PBB expects to end the year with a total of 85 branches and increase this further to 100 by the end of 2013.

It provides close to the full range of banking services and products including cash management, retail and corporate lending, deposit products, international trade finance, treasury and trust products.

The bank earned P496.64 million in the first half of the year, up 143 percent year on year.