International Exchange Bank (iBank), one of the leading commercial banks in the country, filed yesterday a registration statement with the Securities and Exchange Commission (SEC) and a listing application with the Philippine Stock Exchange (PSE). This will be the first major Initial Public Offering (IPO) for the year.
iBank plans to offer 4.42 to 8.35 million primary common shares with a current par value of P100 per share. These will represent 15 to 25 percent of the bank’s outstanding shares after the IPO and will be offered within the price range of P160-P190 per share.
The Bank will unlike the IPO proceeds to increase its earning assets, particularly fixed income investment securities and loans. The additional capital from the IPO will enable the Bank to increase its risk assets while meeting the required capital adequacy ratio iBank believes that the additional capital will allow it expand its operations and leverage its existing organization and infrastructure resulting in improved economies of scale, reduced unit service delivery costs, and increased profitability.
iBank, which opened as a fullservice commercial bank in September 1995, operates a network of 71 branches nationwide and has total assets amounting to P47.4 billion as of June 30.
As of year-end 2003, iBank has generated total deposits of P35.8 billion representing an annual compounded growth of 21 percent from P9.4 billion after its first full calendar year of operations in 1996. During its nine-year history, the Bank has focused on the needs of the middle market successfully differentiating itself from competition through its organization’s unique customer service orientation.
ATR-Kim Eng Capital Partners, Inc. is the Issue Manager and Lead Underwriter for the iBank IPO.
