Metrobank to sell 204 million more shares of stocks

REPORT FROM BUSINESSWORLD Metropolitan Bank and Trust Co. (Metrobank) is issuing 204 million new shares through a domestic and international equity placement. In an interview, Metrobank Senior Vice-President for corporate planning Bernardito M. Lapuz said the proceeds of the stock sale would help the bank cope with stricter rules under Basel 2. Metrobank is allowed to issue 2.5 billion more shares. Metrobank has 1.63 billion shares circulating in the market. Metrobank shares were last traded for P43.50 apiece, down from the previous day’s close of P44.50. During last Wednesday’s stockholders’ meeting, the bank approved a resolution dissolving stockholders’ preemptive right, which allows them to buy the stocks ahead of the others. Antonio V. Viray, the bank’s corporate secretary, said the preemp-tive right discourages other investors. "We are doing this to improve free float," he said. Metrobank has appointed UBS AG, acting through its business group UBS Investment Bank, as the sole international underwriter and bookrunner, while First Metro Investment Corp. has been tapped as the domestic coordinator. The group posted a net income of P4.28 billion for 2005, 7.2% or P330 million lower than the previous year’s P4.61 billion. In spite of the lower earnings, the group managed to grow its net interest income by P6.37 billion to P19.86 billion in 2005. This represented 67.08% of the group’s total revenues. For this year, the bank is looking at enhancing its cash management products and services as its cash management department embarks on an intensive sales and product development. The bank also said it would continue to negotiate with prospective investors for volume sales of its bad assets. -- Ma. Elisa P. Osorio/BusinessWorld