Bank of Commerce Files for P4 Billion IPO

Bank of Commerce has formally submitted its proposal to list in the stock market through an initial public offering. According to the Securities and Exchange Commission, the bank will offer up to 280,602,800 common shares at up to P12.50 per share, plus an overallotment option of up to 42,090,400 common shares, for a total of P4 billion. 

According to the bank, which is an affiliate of Ramon Ang-controlled San Miguel Corporation, proceeds of the IPO will be used to fund the bank’s lending activities, acquisition of investment securities, and finance capital expenditure requirements in connection with the upgrading of its ATM fleet and its core banking system.

The offer period is from March 7 to 18 with the target listing date on March 25.

Bank of Commerce has undergone various iterations through the years but its roots go back to 1963 with the Binondo-based Overseas Bank of Manila. It acquired its current name in 1991, and became a part of the San Miguel conglomerate after San Miguel Properties and the San Miguel Corporation Retirement Fund became its controlling shareholders. 

In its prospectus, Bank of Commerce said it has engaged BDO Capital & Investment Corporation, China Bank Capital Corporation, Philippine Commercial Capital, Inc., and PNB Capital Investment Corporation as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.

In 2020, Bank of Commerce registered a net income of P784.4 million. Total assets grew to P170.9 billion, with net loans and receivables at P71.6 billion. Deposits grew to P149.1 billion.

According to its profile, as of March 2021, Bank of Commerce was the 16th largest bank in the Philippines in terms of assets and 17th in terms of capital. It currently has around 140 branches nationwide.