MANILA - Philippine lender Asia United Bank is seeking to raise as much as P9.7 billion through an initial public offering next month, a regulatory filing showed, becoming the latest firm to tap the stock market in what has become a top investment destination in Southeast Asia.
The initial public offering comes after the Philippines saw a record $2.53 billion raised from IPOs and follow-on deals last year. The main Philippine share index hit a record high on Monday and is the best performer in Southeast Asia so far this year, buoyed by optimism about the country's economy.
The Securities and Exchange Commission has approved Asia United's planned May 7-14 initial public offering, the filing showed. Pricing will be finalized on May 3 with the bank aiming to list on the Philippine Stock Exchange on May 17.
Asia United Bank plans to sell up to 88 million primary common shares for as much as P110 per share. There is an overallotment option of up to 8 million shares.
The company will use the proceeds to finance its expansion.
The listing is subject to approval by the Philippine Stock Exchange.
It will be the second local IPO this year following Philippine Business Bank's P3.2-billion listing in February.
It also comes after Philippine conglomerate LT Group Inc.'s record P37.7-billion follow-on share offer this month that drew strong interest from international investors.
The main stock index has risen about 22 percent this year, getting an extra lift after the country won its first investment grade rating last month from Fitch Ratings.
UBS AG has been mandated as the sole global coordinator. Together with Credit Suisse, it will also act as bookrunner and lead manager for the offering.
Asia United Bank, which is owned by Philippine snack food manufacturer and exporter Republic Biscuit Corp., increased its full-year net profit by 20 percent in 2012 to P1.36 billion on robust trading gains and interest income.
