UBS AG buys over 3 million AUB shares

UBS AG, a global financial services company, bought more than 3 million common shares of Asia United Bank Corp., exercising its over-allotment option of 8 million shares.
 
In a disclosure to the Philippine Stock Exchange (PSE) Tuesday, AUB said it received a letter from UBS on the partial exercise of its over-allotment option, involving 3,340,360 common shares.
 
“Payment for and delivery of the Option Shares shall take place not later than 10 a.m. (Manila Time) on June 19, 2013," the disclosure read.

An over-allotment option, or "greenshoe option," allows underwriters to issue up to an additional 15 percent of company shares in an initial public offering to stabilize the price of the stock.

"The underwriter has option to buy or sell more shares to make commission or for the company to raise capital," Eagle Equities Inc. president Joseph Roxas said.

AUB's share price closed at P89.95 apiece on Tuesday from P89.50 per share on Monday.

AUB priced its initial public offer (IPO) at P95 apiece, the midpoint of the indicative range of P80 to P110 ahead of the roadshow.

During its IPO on May 17, AUB sold 88 million primary shares, including the over-allotment portion of 8 million shares. — BM, GMA News