MEDILINES Distributors, Inc. has received the go signal from the Philippine Stock Exchange (PSE) for its P2-billion initial public offering (IPO) slated for next month.
“The exchange approved the application of [Medilines Distributors] for the initial listing of up to 2,750,000,800 common shares, with a par value of [25 centavos] per share, under the main board of the exchange, which includes the shares subject of the company’s [IPO],” the PSE said in a listing notice on Wednesday evening.
Medilines Distributors was founded in 2002 and is involved in the business of distributing medical devices from brands such as Siemens, B. Braun, and Varian. The company has a product portfolio that feature devices for diagnostics imaging, dialysis, as well as cancer therapy.
“The healthcare industry has been in the spotlight since this pandemic broke out,” PSE President and Chief Executive Officer Ramon S. Monzon said in an e-mailed statement.
“We are pleased to see a company in this space tap the stock market for capital raising. We are hopeful that this IPO will pave the way for other companies in this sector to seek funding from the equities market,” he added.
The company is looking to offer to the public as much as 825 million common shares for up to P2.45 per share. It has scheduled its price-setting on Nov. 16.
Medilines Distributors will be offering up to 550 million common shares as the primary offer. Meanwhile, company chairman Virgilio B. Villar will be offering up to 275 million common shares by way of secondary offer.
“We intend to use the net proceeds from the sale of primary shares to fund the working capital in relation to the procurement of existing products and the buildup of medical consumables inventory and debt repayment,” the company said in its prospectus dated Oct. 8.
Majority or P743.1 million of the proceeds from the sale of primary shares will be used to repay debt, while P541.5 million will be allotted for working capital for the procurement of products as well as fund its foray into the medical consumables segment.
The company said it will not be receiving proceeds from the secondary offering of Mr. Villar’s shares.
“The exchange’s approval of the conduct of the IPO and listing of the company’s shares is subject to its compliance with all of the post-approval conditions and requirements of the exchange,” the PSE said.
Medilines Distributors aims to conduct the offer from Nov. 22 to 26, while its listing date was tentatively set to Dec. 7. It will be listed under the stock symbol “MEDIC.”
The company assigned PNB Capital and Investment Corp. as the offer’s sole issue manager, lead underwriter, and sole bookrunner. — Keren Concepcion G. Valmonte