AUB sets market debut

MANILA, Philippines - The commercial bank unit of the Rebisco Group is set to debut in the local bourse this week while the brewery arm of conglomerate San Miguel Corp. (SMC) will make its exit.

Asia United Bank (AUB), which is wrapping up its P8.36-billion initial public offering, will join the Philippine Stock Exchange (PSE) on Friday.

It is the second IPO this year, following the P3.2-billion share sale of thrift lender Philippine Business Bank of the Zest-O Group in February.

In an international bookbuilding early this month, the AUB order book was five times oversubscribed with approximately 90 investors, Lauro C. Baja III, managing director of UBS Investments Philippines Inc., earlier said.

The commercial bank priced its shares at P95 each, well within the P80-P110 indicative range, to encourage aftermarket support, Baja said.

UBS was the sole global coordinator and joint bookrunner for the transaction.

The P95 price represents a 1.5x price-to-book value for AUB, below the industry average of 2x.

Offer period for the 88 million shares, including the over-allotment option of eight million shares, started on May 7 and will end today.

Baja said the Rebisco Group’s initial foray into the international capital markets “received overwhelming support from the investor community.”

AUB is owned by a consortium of Filipino industrialists, Taiwanese investment banks and Singapore venture capitalists. Republic Biscuit Corp., the Philippines’ leading manufacturer, distributor, and exporter of snack food products, owns 44 percent of the bank.

As of end-2012, the 15-year-old bank had 107 branches. AUB will use the P7.2-billion net proceeds for general corporate purposes, acquisitions of bank licenses and expansion of branch network.

Meanwhile, San Miguel Brewery Inc. (SMB) is exiting the PSE on May 15, just five years after debuting in the local stock exchange.

Last month, SMB completed buying back its publicly-held shares after failing to jack up its minimum public ownership level to the 10 percent required by the PSE.