Banco de Oro GDRs listed in London; $115.6M raised

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Banco de Oro GDRs listed in London; $115.6M raised
Posted: 3:02 AM Jan. 28, 2006
Inquirer

AN investment firm of mall magnate Henry Sy listed 9.1 million Global Depositary Receipts (GDRs) of its banking affiliate Banco de Oro Universal Bank on the London Stock Exchange (LSE) on Thursday.

The GDR offer, made at $12.70 apiece, generated about $115.6 million, equivalent to about P6.1 billion.

Primebridge Holdings Inc., a subsidiary of Sy's flagship company SM Investments Corp., listed the shares on the LSE. It owns 22 percent of Banco de Oro.

The GDRs -- a fund-raising instrument traded on the overseas market -- are equivalent to 16.8 percent of Banco de Oro's total outstanding shares. Each GDR represents 20 shares.

The Banco de Oro GDRs are said to be the only Philippine issue listed on the LSE.

The GDR deal was managed by Macquarie Bank Ltd.

Inquirer sources said the GDRs fetched a price of $13.70 apiece when listed on Thursday. They said 41 percent of the demand came from investors in the United States, 32 percent from Europe, and the remainder from Asia.

SM Investments chief financial officer Jose Sio said, "The success of this GDR offering reaffirms international investors' confidence in the Banco de Oro team, and the strategy that they are undertaking."

The funds to be raised from the GDR offer will be set aside for Banco de Oro's expansion and future acquisitions.

Banco de Oro president Nestor Tan had said the "proceeds will be used for various SM Investment projects, including the purchase of more Equitable PCI Bank shares, should these become available."

Banco de Oro has proposed a merger with Equitable PCI, the country's third-largest bank in assets, of which the SM group has become the biggest shareholder.

A shareholder of Equitable PCI, the state pension fund Government Service Insurance System, is opposing the merger proposal for offering what it considers too low a price, and is offering its shareholding to investors at a higher price. Elizabeth L. Sanchez, with INQ7.net

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