Metrobank ups ACS via stock dividend
Credit to Author: EMETERIO SD. PEREZ| Date: Thu, 28 Feb 2019 16:18:42 +0000
Metropolitan Bank and Trust Co. (MBT) will hold its stockholders’ meeting on April 24, 2019 to ratify, among other items in the agenda, the declaration of a 13-percent stock dividend. Said stock dividend, according to the bank’s filing, requires the issuance of 517,401,955 MBT common shares to all stockholders.
Valued at P10,348,039,094, the issuance of 517,401,955 MBT common shares will meet the increase in the bank’s authorized capital to P140 billion, or 7 billion common shares, from P100 billion, or 5 billion common shares. The value translates to P20 (P19.9999999884036) for each of 517,401,955 MBT common shares.
At present, Metrobank has 3,980,015,036 outstanding common shares, which carry par value of P20 per share, and are all listed on the Philippine Stock Exchange (PSE). It would have 4,497,416,991 outstanding common shares with the addition of 517,401,955 MBT common shares.
In a filing, Metrobank said the increase will be sourced from unissued common shares. Of ACS of five billion common shares, 1,019,984,964 common shares remain available for additional issuance. The bank would still have 502,583,009 common shares available for, say distribution of dividends.
On Feb. 13, 2019, Metrobank’s 13-person board approved the increase in the bank’s authorized capital stock (ACS) to 7 billion common shares from 5 billion common shares. The increase in the bank’s ACS is subject to the approval of the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC).
P1-cash dividend
Metrobank said its board also approved on Feb. 13, 2019 the distribution of regular P1 dividend to stockholders which needs regulatory approval. The cash dividend, which is equivalent to five percent of P20 par value, will be paid on March 14, 2019 to all stockholders as of March 1, 2019.
A public ownership report (POR) as of Dec. 31, 2019 and posted on Jan. 10, 2019 on PSE website listed GT Capital Holdings Inc. as direct holder of 1.447 billion MBT common shares, which represent 36.36 percent of 3.980 billion outstanding common shares.
Of 3.980 billion MBT common shares, Metrobank listed 12 directors as holders of 26.676 million MBT common shares, or 0.75 percent. The bank’s 11 officers owned 416,256 MBT common shares while 23 affiliates, who are not necessarily corporate stockholders, held 555,010 million MBT common shares, or 13.93 percent.
Century Savings Bank held 404,390 MBT common shares, or 0.01 percent.
The public stockholders, according to the POR, held 1,947,492,163 MBT common shares, or 48.93 percent. Incidentally, their holdings even topped the number of MBT common shares owned by GT Capital Holdings, the principal stockholder, which held only 36.36 percent of outstanding MBT common shares.
Due Diligencer’s take
The distribution of stock dividend is rare among listed companies. The list shows only a few led by Metrobank is distributing common shares to meet the requirement in increasing its authorized common shares to seven billion.
Metrobank makes itself a rare kind of listed company by paying its stockholders in stocks on top of P1 cash dividend. The public should be thankful to the bank’s board for approving it.
How would this affect the trading on the bank’s listed common shares? On Feb. 22, 2019, trading on MBT common shares opened at P82.50, peaked at P82.45, dropped to a low of P81.05 and closed the session at P81.40. Compare this with previous day’s trading when on Feb. 21, 2019, MBT common shares opened trading at P81.80, hit a high of P82.50, fell to a low of P81.65 and closed the session at P82.50.
On Feb. 13, 2019, MBT common shares opened at P82.35, hit a high of P82.45, dropped to a low of P81 and ended trading at P81.
Metrobank’s common shares recorded a 30-day high of P84.45 on Feb. 1, 2019 on volume of 2,745,750. However, on Jan. 31, 2019, the number of MBT common shares was even higher at 3,795,400 against the previous day’s 1,125,680. On Jan. 24, 2019, the volume was even higher at 3,928,940, topping that of Jan. 31, 2019.
Does this tell the public about the stock market’s unpredictability? Just asking.
Email: esdperez@gmail.com
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