February 10, 2013

Philippine Business Bank to Raise Capital

Philippine Business Bank (PBB) the thrift bank arm of the Yao family, is planning to raise its capital in the next few years to further strengthen its operations. The bank expects to raise about P3 billion in net proceeds after settling its IPO price at P31.50 per share.

PBB lowered the selling price from P41.94 announced earlier. Proceeds are expected to finance the bank's branch expansion. PBB plans to put up 22 new branches to bring the total number of branches to 100 by the end of 2013.

In a final prospectus submitted to the Philippine Stock Exchange, PBB said: “With current CAR (capital adequacy ratio) and the CAR improvements arising from the proceeds of the offer, the Bank is well positioned to raise new capital for further expansion of its operations.”

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