UBP has confirmed that it was able to raise Php12 Billion through its successful stocks rights offering.
The SRO was offered with a hefty discount at Php56.88 per share with 210.97 million shares.
The total issued shares increased from 2.14 Billion to 2.35 Billion.
7 Billion of the proceeds (59%) will go to banks loand portfolio, 3 Billion (25%) will go to Union Digital bank
Number of shares issued: 210,970,464
Resulting Total issued shares post issuance: (Before) 2,142,106,764 and (after) 2,353,077228
UBP disclosed the following statements in PSE Edge
In compliance with the requirements of Securities and Exchange Commission per its Confirmation of Exempt Transaction dated December 13, 2022, we are pleased to inform the public of the successful completion of the Stock Rights Offering (“Offer”) of Union Bank of the Philippines (the “Bank”):
1. Total number of shares issued broken down as follows:
Shares issued under Section 10.1 (e) pursuant to the first and mandatory second round: 210,970,464 Shares issued under Section 10.1 (e) pursuant to the exercise of Principal Shareholders’ Commitment: 0 Shares issued under Section 10.1 (l): 0
2. Resulting total number of issued and outstanding shares post-issuance: 2,353,077,228
Please note that the actual subscription of the Rights Shares will become effective only upon listing of the Rights Shares on The Philippine Stock Exchange, Inc. on February 6, 2023.
The new list of blue chips stocks have been released by Philippine stock exchange. This new list added DMCI holdings and Union Bank Philippines and ousted two long time property index stocks Robinsons Land Corporation and Megaworld
This list will be effective starting February 06, 2023.
We expect volatility by the time this becomes effective and the market tries to price in the changes as big hedge fund managers will do rebalancing of their portfolios.
What are Blue chip Stocks
Blue chip stocks are so called best companies in the Philippine market today. They have been selected by the Philippine Stock Exchange to represent the best companies in the country. They are the stocks that represent the Philippine Stock Exchange Index or PSEI.
How do they Select Blue chip stocks to Represent PSEI
We have a previous article here explaining the minimum requirements for the selection criteria. Also before the announcement of Semirara Mining Corporation inclusion on the index, we made a youtube vlog review. Final results have been confirm before August 8 based on the latest Security and Exchange commission announcement.
Selection includes liquidity from the last 9 months of trading performance, Highest in market capitalization and a public float level of at least 20%.
Philippine Stock Exchange
Here is the latest disclosure from the Philippine stock exchange
DMCI Holdings, Inc. (DMC) and Union Bank of the Philippines (UBP) will be included in the PSE index (PSEi) starting February 6, 2023. Both companies will be replacing Megaworld Corporation (MEG) and Robinsons Land Corporation (RLC) based on the January to December 2022 index review of the Philippine Stock Exchange (PSE).
DMC and UBP have been PSEi constituents in the past and rejoining the main index after a year and a half and 14 years, respectively.
To be considered for inclusion in the PSEi, a listed company should be among the top companies in terms of liquidity and market capitalization. It should also have a free float level of at least 20 percent of its outstanding shares. Relevant financial criteria as well as eligibility for early inclusion are also considered by the PSE in the index review.
“The 20 percent minimum free float requirement was implemented for all indices starting with this index review. We hope to see improved liquidity in the stock market with more shares available from companies that want to remain or qualify for future inclusion in any of the indices,” said PSE President and CEO Ramon S. Monzon.
In terms of sectoral indices, PSE will replace East West Banking Corporation (EW) in the Financials index. Basic Energy Corporation (BSC) and The Keepers Holdings, Inc. (KEEPR) will be added to the Industrial index while Vitarich Corporation (VITA) will be removed. The Property index will have four new constituents namely D.M. Wenceslao & Associates, Incorporated (DMW), Filinvest REIT Corp. (FILRT), MREIT, Inc. (MREIT), and RL Commercial REIT, Inc. (RCR). Meantime, Philippine Infradev Holdings, Inc. (INFRA) and Philippine Estates Corporation (PHES) will be excluded from the said index. AllDay Marts, Inc. (ALLDY) and Medilines Distributors Incorporated (MEDIC) will both become part of the Services index, which will also see the removal of Metro Retail Stores Group, Inc. (MRSGI) and Philippine Seven Corporation (SEVN). Finally, the Holding Firms index will see the addition of Lopez Holdings Corporation (LPZ) while the Mining and Oil index will see the removal of Benguet Corporation (BC).
The PSE MidCap index will have a number of changes. The new index members are China Banking Corporation (CHIB), FILRT, MEG, MREIT, RCR, RLC and Synergy Grid & Development Phils., Inc. (SGP). The seven new PSE MidCap index constituents will take the place of AllHome Corp. (HOME), DDMP REIT, Inc. (DDMPR), DMC, Philex Mining Corporation (PX), Philippine National Bank (PNB), UBP and Vista Land & Lifescapes, Inc. (VLL).
For the PSE Dividend Yield index (PSE DivY index), Citicore Energy REIT Corp., (CREIT), UBP and Security Bank (SECB) will replace Bank of the Philippine Islands (BPI), DDMPR and FILRT.
From its March 28, 2022 launch to January 26, 2023, the PSE MidCap index has gained 4.5 percent while the PSE DivY index has lost 1.1 percent. In the same period, the PSEi was down 1.3 percent.
In August 2022, the Securities and Exchange Commission included securities that make up the PSE DivY index among the eligible Personal Equity and Retirement Account (PERA) investment products.
