A study on the initial public offerings of selected Philippine banks from 1997 through 2002: An analysis of the operating performance of banks before and after going public

This paper studied in the operating performance of selected Philippine banks three years before and after going public. Operating performance measures used were the changes in the ownership structure, capital adequacy, asset quality, profitability and liquidity ratios. The Wilcoxon signed-rank test results at a 10% level of significance showed only a few significant variables that affected the operating performance of the selected banks. However, the proponents were able to find some trends such as the increase in some of the ratios during the IPO year and a year after the IPO. There were also those that declined during the IPO year but have showed improvements immediately after the offer. The results are also indicate that there was no under performance as defined by the operating performance measures in the selected banks and it was even observed that some key operating performance measures showed improvement in the post listing period especially a year after the IPO. The paper also looked into the objectives of each bank for the going public and whether these objectives were met after the offer. The proponents noted that essentially, the selected banks were able to meet their goals as evidenced by the increase in the total loans portfolio and trading investment securities which were the common objectives of the banks for the offer