AUB stocks jump 9.5% in market debut

MANILA, Philippines - Newly-listed commercial lender Asia United Bank (AUB)  aims to fasttrack its expansion program organically and through acquisitions following its P8.36-billion initial public offering (IPO).

Shares of AUB, the top-traded stock yesterday, jumped 9.57 percent or P9 from its offer price of P95 to close at P104. Its shares opened at P101.50 before hitting an intraday high of P105.10 amid robust demand.

“We have the license (to put up) 50 plus new banks. We are doing two right now and we will see if we can accelerate that further,” AUB president and chief finance officer Abraham Co. As of end-2012, the 15-year-old bank had 117 branches.

Co said proceeds from the IPO will be used for branch expansion and the upgrade of its information technology infrastructure.

AUB listed 320 million shares in the Philippine Stock Exchange (PSE). Of this, the bank offered 88 million primary shares, including an oversubscription option of eight million shares.

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

The offer shares were five times oversubscribed, with 60 percent taken up by foreigners and the remaining 40 percent by local investors, AUB first vice-president Andrew Yap told reporters.

In an international bookbuilding early this month, the orderbook was five times oversubscribed with approximately 90 investors.

Co said AUB plans to go into investment banking while joining more infrastructure and power projects needed by the country.

The lender is also looking for an acquisition this year.

Co said they are considering the purchase of a Luzon-based bank that will increase the customer base of AUB.

AUB aims to increase its current 117-branch network to 250 in the next five years to provide access to a broad base of investors in line with the goal of becoming one of the top 10 domestic banks in the Philippines.

AUB expects to grow its loan portfolio 30 percent every year, Yap said, adding that loan growth in the industry is at 15 percent per annum.

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 AUB.