EastWest Bank bucked the broader market’s downward trend yesterday and ended higher on its first day of trade. The stock hit an intra-day high of P20.70 prior to closing at P19.78, up 6.9 percent over its initial public offering (IPO) price of P18.50 each share.
In a briefing following the listing of the bank’s shares, EastWest Bank chairman Jonathan Gotianun said the bank has mapped out an ambitious growth plan aimed at further widening its customer base and geographical footprint.
From the existing 150 branches, EastWest Bank intends to add another 100 branches this year and further increase this to 350 by 2014.
Funding will come from the recently concluded maiden offering of shares, which generated P5.22 billion in total proceeds, inclusive of the greenshoe option.
Gotianun said the IPO underwriters decided to exercise the overallotment option due to strong demand from institutional investors. The offer shares account for about a quarter of the company.
“Our IPO and our listing today will give us growth capital to bring EastWest Bank to the next level of its development. We are very happy for the enthusiastic and positive response to our IPO, both here and abroad,” Gotianun said.
The IPO was the second biggest this year after banking tycoon George S.K. Ty’s GT Capital Holdings Inc.’s P21.6-billion share sale.
“We have undertaken this exercise to enable the bank to grow. We want to be a more relevant and significant player and one that contributes significantly to the country’s growth,” Gotianun said.
Gotianun said EastWest Bank prefers to grow organically first before considering further acquisitions.
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