Union Bank of the Philippines (UBP) said Friday it raised P10 billion in fresh capital from a stock rights offering (SRO).
UBP said in a stock exchange filing the offering of 327.12 million common shares at P30.57 per share was fully subscribed on robust participation from shareholders.
“The strong response from our shareholders to the Stock Rights Offering underscores their confidence in our strategic objective to become the best retail bank in the country,” said UBP president and chief executive Edwin Bautista.
UBP’s principal shareholders, including Aboitiz Equity Ventures, Social Security System and Insular Life fully subscribed to the offering.
UBP will used the proceeds to support its strategic growth initiatives.
The rights shares were made available to eligible shareholders, at a ratio of 1 rights share for every 9.1382 common shares held as of May 9, 2024.
The new rights shares were listed on the Philippine Stock Exchange on May 31, 2024.
Following the issuance, UBP’s total outstanding shares increased from 2,989,287,495 to 3,316,377,607 common shares.
CLSA Exchange Capital Inc., and Unicapital Inc. served as joint underwriters for the offering, while Citigroup Global Markets Limited acted as capital markets adviser.
UBP posted net income of P2 billion in the first quarter of 2024, down 41 percent from the same period last year on higher expenses related to integration of Citi’s consumer business.
Topline revenues remained strong, growing by 14 percent year-on year on higher proportion of consumer loans, net interest margins and transaction fees.
Net interest income grew 17 percent to P13 billion, driven by a 59-basis-point improvement in net interest margins to 5.7 percent.
Non-interest income excluding trading gains went up by 13 percent to P4.7 billion.
UBP completed the final phase of the Citi integration in March this year. The integration involved the transfer of millions of customer and transaction records from Citi to UBP platforms.
