AUB IPO: Stock rises 9.5% on first trading day

James Ryan Jonas

Despite a slowdown in the Philippine stock market on Friday, May 17, the stock of Asia United Bank (AUB) bucked the trend and ended on a high note, closing at P104.00 on its first trading day.

In its market debut, AUB gained 9.5% compared to its offer price of P95.00. That means if you bought 100 shares of AUB during the offer period (amounting to P9,500.00), your money has grown from P9,500.00 to P10,402.50 in just one day.

The stock hit an intra-day high of P105.10 and an intra-day low of P101.50.

31st record all-time high this year

AUB was one of that day’s actively traded stocks. Overall market sentiment was down, with the Philippine Stock Exchange index (PSEi) sliding 0.43% to close at 7,279.87.

Investors seemed to be in profit-taking mood last week, after the 30-company benchmark PSEi breached the 7,400 mark for the first time and recorded its 31st record all-time high for the year.

As of May 20, the AUB stock is down P2.00 from its opening day price, closing at P202.00 yesterday.

2nd IPO in 2013

AUB is the second company to file for an initial public offering (IPO) this year, following the lead of another bank, Philippine Business Bank (PBB), which debuted on the PSE in February 2013. On its first trading day, PBB closed at P36.35 — a 15.40% increase from its initial offer price of P31.50.

As of May 20, PBB stocks are trading at P34.10 per share.

AUB Company Profile

Asia United Bank is primarily owned by Republic Biscuit Corp. (Rebisco), one of the Philippines’ leading manufacturer, distributor, and exporter of snack food products. Other major shareholders include Kuo Yu Philippines Holdings Inc., Lambda Holdings Corporation, and Magis Equity Ventures of Singapore.

As of year-end 2012, the bank has a total of 107 branches all over the Philippines. In 2012, its assets reached P64.94 billion while booking a net income of P1.12 billion, an 18% increase from P1.12 billion registered in 2011, on the basis of higher trading and securities gain.

Read more about the AUB IPO here.

James Ryan Jonas teaches business management, investments, and entrepreneurship at the University of the Philippines (UP). He is also the Executive Director of UP Provident Fund Inc., managing and investing P3.2 Billion ($56.4 Million) worth of retirement funds on behalf of thousands of UP employees.