An Iloilo City-based company that manages hospitals and healthcare facilities has secured approval of the Securities and Exchange Commission (SEC) to sell its shares through an initial public offering (IPO).
Allied Care Experts (Ace) Medical Center Iloilo, Inc. plans to sell 36,000 common shares at an offer price ranging from P25,500 to P40,000 each, or gross proceeds of up to P1.44 billion.
Based on documents released by the SEC on Friday, the IPO’s net proceeds — after taxes and fees — is expected at P956,927,865, the bulk of which or 40% is for construction of facilities at P382,771,146, with 30% going to medical equipment at P287,078,359.50.
Pre-operating expenses will corner 20%, with the rest shared by fees for architects and engineers, as well as hospital and office furniture and fixtures.
The IPO shares are equivalent to 3,600 blocks or 10 shares per block.
Ace Medical Center-Iloilo has registered a total of 240,000 common shares with the SEC, of which 203,400 are issued and outstanding and 600 the founder’s shares all at P1,000 apiece. The latter shares are not part of the public offering.
The company was established to maintain, operate, own and manage hospitals, medical and related healthcare facilities and businesses. These businesses include clinical laboratories, diagnostic centers, ambulatory clinics, condo hospitals, scientific research and allied undertakings and services.
Amado Manuel C. Enriquez Jr. is chairman of the board, while Ferjenel G. Biron is president and Amado M. Lavalle Jr. is vice-president of the La Paz, Iloilo City-based company.
In its prospectus, the company said it is its mission to set up a tertiary health care facility with an organized, systematic, cost-effective and holistic approach to its goal of providing the best quality and justifiable medical services to its clients and shareholders.
Upon construction, it will operate initially as a secondary hospital. It will then seek accreditation for residency training of its doctors and accomplish its purpose of setting up a tertiary hospital.
“It will operate a complete and world-class facility, manned by medical specialists who are competent and fully qualified in their line of work, and have equally efficient well motivated employees and management staff,” the company said in its prospectus.
The SEC memorandum on the the company’s IPO states that the major stockholders of the company are committed to fund the construction, development, pre-operations and start-up costs of the hospital. The company is backed with a credit line facility.
As of Nov. 30, the company’s hospital building was 75% constructed and estimated to be completed by July next year. The building is targeted to be inaugurated in September 2019. — Victor V. Saulon