MANILA -- The Securities and Exchange Commission (SEC) has approved the application of Allied Care Experts (ACE) Medical Center–Legazpi, Inc. for a PHP1-billion initial public offering (IPO).
In its meeting on Nov. 26, the commission en banc resolved to render effective the registration statement of ACE Legazpi for a total of 240,000 shares and to issue the corresponding order of registration and permit to sell securities upon the company’s compliance with certain requirements.
ACE Legazpi will offer 36,000 common shares in five tranches at an offer price ranging from PHP200,000 to PHP362,500 for every block of 10 shares, in cash or installment. The shares will be traded over the counter.
The company expects to raise PHP996.59 million in net proceeds for building construction (PHP244.24 million), medical equipment (PHP300 million), architects and engineers fee (PHP47 million), office equipment, furniture and fixtures (PHP50 million), debt servicing (PHP170 million), pre-operating expenses (PHP55.5 million), and working capital (PHP129.79 million).
ACE Legazpi is constructing two, four-story hospital buildings in Barangay Bogtong, Legazpi City.
Proceeds from the IPO will fund the completion of Building “A,” which the company targets to operate by December 2020.
ACE Medical Center-Legazpi is envisioned as the biggest private hospital in Legazpi City. It will be a 172-bed, Level II, PilHealth-accredited hospital catering to patients from neighboring communities needing further treatment and management.
The intended markets for the IPO are mostly medical specialists and individuals related to medical field.
Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at ACE Legazpi. Such stockholders, however, must undergo a screening process and possess the minimum requirements as may be determined by the hospital.
The offer comes with benefits and privileges such as discounts on medical and dental services, which the principal investor, his/her spouse, dependents and natural parents may avail of in other medical facilities affiliated with the ACE Group of Hospitals. (PR)
