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Business world
May 8, 2012

EAST WEST Banking Corp. (EastWest) successfully debuted at the Philippine Stock Exchange (PSE) yesterday, bucking a market drop and closing at P19.78 per share, up 6.92% from its initial listing price of P18.50.

The bank saw its share price hit an intraday high of P20.70. In comparison, the bellwether PSE index shed 1.28% or 28.02 points to close at 5,229.53.

EastWest listed 245.32 million shares at P18.50 apiece on the exchange's first board. It was the first initial public offering (IPO) by a bank in eight years.

Yesterday's listing was the second for the year following GT Capital Holdings, Inc. -- the holding firm for the Ty family's businesses -- that debuted on the first board last April 20.

EastWest is expected to gain around P2.34 billion in net proceeds from the IPO, with around half allotted for the payment of branch licenses (P1.169 billion) and the balance set for branch network expansion (P584.90 million), information technology infrastructure (P117 million), and general corporate purposes (P468 million).

After its IPO, EastWest is expected to have a market capitalization of as much as P26.52 billion and a public float level of 25%.

EastWest is looking to secure a universal banking license that will allow the bank to reinforce its mid-market thrust and attain a "40%-40%-20%" split among consumer, middle-market, and big corporate accounts, said Antonio C. Moncupa, Jr., president and CEO, at a press briefing.

The creation of an investment banking unit may also be in the pipeline, Mr. Moncupa told BusinessWorld.

Moving forward, an official hinted that cash dividends could be issued to shareholders.

"We haven't set an exact target as of now, but internally, we have talked of about 20-30% of our income for cash dividends," said Jonathan T. Gotianun, EastWest chairman, at the same press briefing.

Officials also bared plans to spent around P2 billion to expand the bank's nationwide network to 350 branches in three years, with 100 up for launching this year alone.

EastWest currently operates 150 branches nationwide. -- F. J. G. de la Fuente