EastWest Bank Sets Pricing for P9-Billion Stock Rights Offer
Key Takeaways
- •EastWest Bank's stock rights offer is priced at P10.80 to P11.05 per share and targets raising about P9 billion.
- •Eligible shareholders as of the November 19, 2026 record date may subscribe to one rights share for every 2.70 to 2.76 common shares held.
- •Filinvest Development Corp. and FDC Ventures committed to fully subscribe to their entitlements and act as standby purchasers for unsubscribed institutional shares.
- •The bank's first-half net income fell to P3.42 billion from P4.13 billion in the same period last year.
- •EastWest Bank shares closed at P10.14 on Monday, up four centavos or 0.4%.
East West Banking Corp. (EastWest Bank) has set the pricing for its planned stock rights offer (SRO), which aims to raise approximately P9 billion to support the bank's growth plans.
In a disclosure to the Philippine Stock Exchange on Monday, the bank said the SRO will be carried out through the issuance of common shares to eligible shareholders, each with a par value of P10. The shares will be offered at P10.80 to P11.05 apiece and will be listed and traded on the Philippine Stock Exchange. A stock rights offer raises capital by giving existing shareholders the option to buy new shares in proportion to their holdings, allowing a bank to strengthen its equity base without diluting ownership among those who participate.
"Under the proposed transaction, eligible shareholders as of the record date of November 19, 2026, will be entitled to subscribe to one rights share for every 2.70 to 2.76 common shares held," EastWest Bank said.
The offer will be backed by the bank's major shareholders, Filinvest Development Corp. (FDC) and FDC Ventures, Inc., which have committed to fully subscribe to their respective entitlement shares during the first round of the offer.
"In addition, the principal shareholders, directly or through wholly owned subsidiaries of FDC acting as standby purchasers, have undertaken to subscribe to any institutional offer shares that remain unsubscribed, subject to applicable regulatory requirements," the bank said.
"This commitment underscores the shareholders' strong confidence in EastWest's growth strategy and long-term prospects," it added.
For Philippine banks, capital raises of this kind are a common way to build up the core equity that regulators require to support lending growth and absorb losses, particularly when profits are under pressure.
The fundraising comes as EastWest Bank's net income declined to P1.56 billion in the second quarter from P2.3 billion a year earlier, bringing first-half profit to P3.42 billion, down from P4.13 billion in the same period last year.
The bank's shares closed at P10.14 each on Monday, up four centavos or 0.4%. — Bettina V. Roc
