By Zinnia B. Dela Peña
The Philippine Star 03/17/2007
The Yuchengco-owned Rizal Commercial Banking Corp. (RCBC) has priced its follow-on offering of up to 182.6 million primary shares at P27 each, the Philippine Stock Exchange (PSE) said in a circular to its member-brokers.
Based on its offer price, the shares would fetch proceeds of about P5 billion for the bank.
RCBC is offering up to 80 percent of the shares to foreign investors while the balance will be sold at the domestic market, with an overallotment option for up to 27.4 million shares.
Trading in RCBC shares was suspended yesterday until March 28. RCBC shares were last traded at P33 each.
CLSA Ltd. was appointed as sole bookrunner and international underwriter of the issue while RCBC Capital will act as the domestic underwriter.
International ratings agency Fitch Ratings recently revised its outlook on RCBC’s long-term foreign and local currency issuer default ratings to positive from stable, citing the lender’s plan to raise additional capital this year and the improved operating environment for local banks.
RCBC is planning to increase its capital stock from P9 billion to P13 billion in order to meet stricter capital demands by the Bangko Sentral ng Pilipinas.
It expects its net income to reach P2.5 billion this year or 25 percent higher than last previous year’s P2.01 billion.
RCBC raised P6.5 billion from its hybrid notes offer in the last quarter of 2006. Fitch Ratings said that this, along with increased profitability last year, would be more than enough to compensate for losses coming from its non-performing assets.
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