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Union Bank of the Philippines prices "re-IPO" at tight discount

The lender aims for a re-rating as the sale will increase liquidity and boost the free-float.
The Union Bank of the Philippines has become the latest in a string of companies û including banks û to sell new shares to international and domestic investors through a fully marketed follow-on transaction aimed at boosting the liquidity in the stock.

The bank also needed to strengthen its capital adequacy ratio to meet the Basel II requirements and consequently all the shares on offer were new. In the past, these sales, often referred to as re-IPOs because they tend to result in a significant broadening of the shareholder base, have typically included a sizeable sell-down by the controlling shareholders.

Having completed the international portion of the deal, which is the price setter for the...
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