ANOTHER member of the Allied Care Experts (ACE) Medical Group has gained the approval of the Securities and Exchange Commission (SEC) to conduct a P1-billion initial public offering (IPO).
In a statement over the weekend, the SEC said it approved the application of ACE Medical Center — Legazpi, Inc. to register 240,000 shares and to issue securities upon submission of certain requirements.
The hospital firm said in its initial prospectus published on its website that it wants to do a primary offer and sell 36,000 common shares equivalent to 3,600 blocks consisting of 10 shares per block. The price of the shares will range from P200,000 to P362,500 per block.
The issuance will have five tranches where the shares will be sold at an increasing offer price on a staggered basis.
The SEC said the hospital’s IPO is targeted to medical specialists and individuals that are related to them, as subscribing to the shares will be a requirement for physicians and medical specialists that want to work at ACE Medical Center — Legazpi.
The hospital firm expects to net about P996.53 million from the IPO, which it will allocate for the development and construction of the hospital, payment of existing loans, procurement of medical equipment and additional working capital, among others.
The SEC noted ACE Medical Center — Legazpi is building two four-story hospitals in Brgy. Bogtong, Legazpi City, and the cash to be generated from the IPO will support the completion of the first building, which it intends to start operating by end of next year.
“ACE Medical Center — Legazpi is envisioned as the biggest private hospital in Legazpi City. It will be a 172-bed, Level II, Philhealth-accredited hospital catering to patients from neighboring communities needing further treatment and management,” the SEC said.
Aside from subscription to the hospital firm’s shares, participating in the IPO will have benefits to investors such as discounts in hospital services from those in the ACE Group of Hospitals.
Aside from ACE Medical Center — Legazpi, other hospital units under the ACE Medical Group have also previously obtained clearance from the SEC to conduct an IPO, namely ACE Medical Center — Iloilo, ACE Malolos Doctors; ACE Medical Center — Butuan; ACE Medical Center Gensan; ACE Dumaguete Doctors; and ACE Medical Center Bohol. — Denise A. Valdez