Lender AUB gets SEC nod to raise P9.7B in IPO

The Securities and Exchange Commission’s gave mid-sized lender Asia United Bank (AUB) the green light to raise up to P9.68 billion from an initial public offering of shares.         Controlled by snack food maker Republic Biscuit Corp., AUB is offering up to 88 million shares, which include the over allotment option, at a maximum P110 apiece.   Proceeds from the offering will be used to buy and pay for branch licenses and expand its branch network, as well as in investments, the implementation of an IT infrastructure, and for general corporate purposes.   The move is in line with AUB’s efforts to boost its capital and financial strength and its growth initiatives.   UBS is the sole global coordinator and, with Credit Suisse, as lead bookrunner and manager.         AUB closed 2012 with a capital adequacy ratio (CAR) of 15 percent, which was above the mandated 10 percent. Its network totaled 107 branches with the acquisition of the Cooperative Bank of Cavite (renamed Cavite United Rural Bank) and Asiatrust Development Bank.   Under its expansion program, AUB will open 20 new branches in Metro Manila in 2013 and 2014 as well as 25 outside Metro Manila. It opened four branches in first quarter of the year.   AUB reported a net profit of P1.36 billion last year, up 20 percent from P1.14 billion in 2011, helped by trading and lending activities. Total resources grew 27 percent to P63.35 billion and deposits rose by 23 percent to P46.97 billion. — VS, GMA News