October 14, 2013

BSP approves SECB’s increase in authorized capital stock

Security Bank (SECB, Buy) disclosed last Friday that BSP approved its increase in authorized capital stock. SECB will then need to secure SEC approval before it can finally implementation of the capital hike and the planned 20% stock dividend.

Our take: The bank’s planned stock dividend may serve to increase the stock’s trading liquidity. Aside from this, the bank also plans to issue preferred shares which should address concerns on the bank’s foreign ownership which stood at 39.8% as of 30 Jun 2013 vs. the 40% cap. - WealthSec