PBB eyes IPO, UKB license this year

MANILA, Philippines - The Philippine Business Bank (PBB) is targeting the last quarter of the year to launch its initial public offering (IPO) while at the same time applying for an expanded commercial banking (UKB) license with the Bangko Sentral ng Pilipinas (BSP).

PBB president and chief executive officer Rolando R. Avante said that the thrift bank plans to raise between P3 billion and P4 billion from its public listing efforts, increase capital in line with its application for a UKB license and other expansion plans.

Avante said that they may have to tap the country’s capital markets as part of the funding requirements.

 “But most of the funds will be internally generated,” Avante said.

PBB chairman emeritus Alfredo M. Yao said the bank is open to going to the capital markets as they have had talks with First Metro Investment Corp. (FMIC) and Deutsche Bank (Manila branch).

Yao heads a congomerate which includes Amchem Marketing Inc., Asiawide Refreshing Corp., Harman Foods (Phils.) Inc., King of Travel, Money Movers Inc., Semexco Marketing Inc., SMI Development Corp., Solmac Marketing Inc. Uni-ipel Industries Inc., Zesto-O Philippines Inc., and ZestAir.

All documentary requirements have already been submitted, or are in the process of completion, to the Securities and Exchange Commission (SEC) and the Philippine Stock Exchange (PSE).

The same efforts are being done with the Bangko Sentral ng Pilipinas (BSP) in relation to their application for an expanded commercial banking license.

PBB is presently capitalized at P3.7 billion, while the minimum capital requirement for a bank to received a unibank license is P4.5 billion.

“We want to launch the IPO in the last quarter, as failure to do so will force as to re-file our applications which is an unnecessary and costly affair,”  Avante said.

Getting a unibank license will allow PBB to undertake both banking and other financial activities which will directly support other commercial activities of the conglomerate.