FREE Special Report: Update on Rizal Commercial Banking Corp’s Stock Rights Offer (SRO)

PinoyInvestor’s Special Reports cover our partner brokers’ expert analysis on a range of topics affecting the stock market. These may include economic updates, sector analyses, upcoming IPOs, and more! Learn how you can use this report in the PinoyInvestor guide.

 

Our Partner Broker’s Analysis

At the final Stock Rights Offer (SRO) price, investors of are getting the new shares at 0.7x post-SRO book value. At the projected price of RCB at PHP 35.20 per share, this translates to 2018 P/BV of 0.8x. The stock is
already trading at par with other smaller banks with 0.8x median P/BV.

RCB’s Final Offer Price: PHP 28.00/share, 24% discount from its 10-day VWAP of PHP 37.05

Offer Ratio: 1:2.6132

Offer Shares: 535.7 Million

Ex-date: June 8, 2012

Rights Offer Period: June 25 – June 29

Tentative Listing Date: August 3

 

Our Partner Broker’s Recommendations

Like the other recent banks’ SROs, we expect RCB’s stock price to weaken due to the 22% Earnings per Share (EPS) dilution. For those who are looking to buy, we advise to wait for the price to stabilize before coming in.

 

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AP Securities (formerly Angping & Associates Securities)
AP Securities (formerly Angping & Associates Securities)

AP Securities (formerly Angping & Associates Securities) is one of PinoyInvestor’s partners in delivering superior and reliable stock research reports that help Filipino investors make smart stock investing decisions! Learn more about them here.