EastWest Bank prices stock rights offer at P21.53 per share
EastWest Bank prices stock rights offer at P21.53 per share
EastWest Bank, the country’s fastest growing universal bank, opened its stock price offer of P21.53 per share today.
The Gotianun-led EastWest plans to raise P8 billion from the stock rights offer that will end on April 30.
HSBC is the sole international lead manager for the undertaking and Unicapital is the sole domestic lead manager and underwriter.
EastWest said net proceeds from the stock rights offer will initially be invested in short-term investments allowed under BSP regulations but will eventually be reinvested in loans.
The stock rights offer will boost EastWest’s capital adequacy ratio to 18 percent from 13.1 percent, and common equity tier-1 ratio to 14 percent from 9.3 percent, at the end of 2014 respectively.
The higher CAR which reflects stronger financials will support EastWest’s strategic growth initiatives such as expanding its balance sheet to meet increased demand, optimizing its expanded branch store network and expanding its products and services.
Stockholders of EastWest approved the increase in its authorized capital stock to P40 billion from P20 billion in its annual stockholders meeting held earlier this month.
The increase in the additional capital stock will give the bank more flexibility should an investment opportunity present itself and should it need additional capital to support its expected organic growth.
