July 07, 2013

SEC clears AG Finance IPO

The SEC has allowed AG Finance Inc. to list in the local bourse via IPO. Specifically, AG Finance will sell 68.074 million shares worth between P1.91 to P2.20 each.  The net proceeds  that will be received from the IPO will be used to finance the company’s professional and skilled overseas Filipino workers’ (OFW) loan portfolio expansion program.

It will also pay P37 million in existing loans with China Banking Corp. that carries an interest rate of 6 percent per annum. AG Finance said it will spend P47 million for its OFW loan portfolio expansion and P53 million for loans to professional skilled workers.

AG Finance, incorporated in 2001, is into microfinance and consumer loans targeting Filipinos here and abroad. It provides short term, unsecured credit facilities to permanent rank-and-file employees of medium-size Philippine firms. Profits of AG Finance rose seven percent to P43.

187 million last year from P40.264 million a year ago, driven by an 11-percent growth in net interest income to P78.55 million from P70.48 million in the previous year. - WealthSec