East West Bank gets nod to raise capital
Mania Standard Today
March 8, 2012
by Jenniffer B. Austria

The Securities and Exchange Commission approved the application of East West Banking Corp. to increase its capital stock to P20 billion from P8 billion in line with its planned initial public offering.

Filinvest Development Corp., the parent company of East West, earlier said it would subscribe to P3 billion, or as much as 300 million shares, from the capital stock increase, comprising P2 billion in fresh capital and P1 billion in cash dividends declared by the bank.

The capital increase also includes P5 billion worth of preferred shares.

East West Bank, owned by property tycoon Andrew Gotianun Sr., plans to raise up to P6.62 billion from a public offering slated this year.

The bank plans to offer 245.316 million common shares at a maximum price of P23.50 apiece.

East West will issue up to 141.056 million in new shares by way of a primary offer to raise as much as P3.31 billion. Filinvest Development will sell the balance or 104.259 million shares to generate around P2.45 billion in proceeds.

The bank will also set aside about 36.797 million in secondary shares to cover the overallotment option.

East West plans to sell up to 171.72 million shares to international investors and 73.594 million shares in the domestic market.

It tapped Deutsche Bank AG and JP Morgan Securities as international lead managers and Unicapital Inc. as domestic lead underwriter.

East West plans to use net proceeds from the IPO to pay bank branch licenses, the expansion of branch network and the implementation of IT projects.

The Bangko Sentral recently approved the East West Bank's application to put up 75 new branches in eight restricted areas of Makati, Mandaluyong, Manila, Parañaque, Pasay, Pasig, San Juan and Quezon City. The bank will also expand its presence in the provinces.