SEC Gives Green Light to Bank of Commerce IPO and Registration of SMC Bonds

The Securities and Exchange Commission (SEC) said Wednesday that it “considered favourably” public offerings from Bank of Commerce and San Miguel Corp. (SMC).

“At its February 15 meeting, the Commission En Banc decided to make effective the registration statements of Bank of Commerce and SMC covering 1,403,013,920 ordinary shares and up to 60 billion pesos of fixed rate bonds. subject to prior registration, respectively, subject to their compliance with certain remaining requirements,” the SEC said in a statement.

COMMERCIAL BANK IPO
SMC’s subsidiary, Bank of Commerce, plans an initial public offering (IPO) of 3.5 billion pesos, while SMC will offer up to 30 billion pesos of fixed-rate bonds in a first tranche of registered bonds shelf.

Bank of Commerce will sell more than 280.6 million ordinary shares to the public for up to 12.50 pesos. The SEC said the company could withdraw 3.34 billion pesos from the offering.

According to the latest schedule submitted to the SEC, Bank of Commerce plans to proceed with its IPO from March 7 to 16, while its listing on the main board of the Philippine Stock Exchange is scheduled for March 23.

Proceeds from Bank of Commerce’s IPO will be used to fund its lending activities, the acquisition of investment securities and to fund capital expenditure requirements, which involve upgrading its fleet of ATMs and of its central banking system.

As of September 30, 2021, Bank of Commerce had 140 branches and 257 ATMs.

The company brought in BDO Capital & Investment Corp., China Bank Capital Corp., Philippine Commercial Capital, Inc. (PCCI) and PNB Capital Investment Corp. as co-issue managers, co-lead managers and co-bookrunners for the offering.

SMC BOND OFFER
SMC can issue fixed rate bonds of 60 billion pesos in one or more tranches within three years. The initial tranche amounts to 30 billion pesos, consisting of 25 billion pesos five-year series J bonds due 2027 and an over-allotment option of up to 5 billion pesos of series bonds K at seven years maturing in 2029.

According to the latest schedule submitted to the SEC, the first tranche bonds will be offered at face value and will be listed on the Philippine Dealing & Exchange Corp. on March 1.

If the over-allotment option is exercised, SMC could withdraw up to 29.63 billion pesos from the offering. The proceeds will be used to refinance the company’s short-term loans as well as for general corporate purposes.

SMC has engaged BDO Capital and China Bank Capital to be joint issue managers for the offering and will be joined by BPI Capital Corp., PCCI, PNB Capital, RCBC Capital Corp. and SB Capital Investment Corp. as co-managers and bookrunners of the transaction. . — Keren Concepcion G. Valmonte

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