Union Bank of the Philippines (UnionBank) obtained the green light from the Philippine Stock Exchange (PSE) to offer over 450 million units of common shares under its stock rights offering valued at P10 billion.
UnionBank on Monday said the PSE approved its offer last 17 April.
The bank aims to sell a total of 450,204,078 common shares to stockholders.
“Net proceeds will be used to fund the capital infusion to UnionDigital, projected retail loan availments, and/or for general corporate purposes,” UnionBank said.
The bank said the price per rights share will be set at a level representing a 15 percent to 25 percent discount based on the volume-weighted average price for 15 consecutive trading days.
UnionBank said the offer period will run from 16 to 24 May to stockholders on record as of 9 May 2024.
P9.2-B revenues in 2023
Last year, the bank earned P9.2 billion as loans and receivables jumped by 10 percent year-on-year to P527 billion.
Operation costs, however, rose by 43 percent to P45 billion due to the ongoing integration of Citi’s individual credit cardholders into UnionBank’s system and funding for UnionDigital Bank, its digital lending arm.
“The acquired Citi consumer business has consistently surpassed expectations, while UnionDigital attained profitability throughout its first full year of operations. We are experiencing early returns on these strategic investments, with leading indicators pointing towards a sustained increase in transactions over time,” UnionBank chief executive officer Edwin Bautista said.
UnionBank has grown its client base to over 14 million, following its acquisition of Citi credit cardholders and the launch of UnionDigital.