MEDICAL equipment distributor Medilines Distributors, Inc. is planning for an initial public offering (IPO) “that could take place before the end of the year,” the company said in a statement.
The company filed an application for an IPO with the Securities and Exchange Commission in August. It has recently appointed PNB Capital and Investment Corp. as sole issue manager, lead underwriter, and sole bookrunner for its stock market debut.
“We envision this to be the first pure-play healthcare IPO in the Philippines,” said Gerry B. Valenciano, president of PNB Capital.
Medilines was founded in 2002 and distributes medical devices from Siemens, B. Braun, and Varian, among others. Its product portfolio includes devices for diagnostics imaging, dialysis, and cancer therapy.
It will be selling 825 million common shares for P2.45 each at most. The IPO comprises 550 million common shares in its primary offer and 275 million shares owned by Medilines Chairman Virgilio B. Villar by way of secondary offer.
Total proceeds from the sale of primary shares will amount to P1.35 billion. Medilines plans to use the funds as its initial working capital for its existing products as well as its product portfolio expansion into the medical consumables segment, and for debt repayment.
“The intended use is consistent with our strategy of foraying into the distribution of medical consumables and accessories that are regularly used by our customers to operate the high-value medical equipment we also sell,” Medilines said in its prospectus.
Medilines aims to become a “one-stop shop” for its customers.
Meanwhile, the sale of secondary shares may raise up to P673.8 million. The company said it will not receive any of the proceeds from the sale of the secondary shares.
According to its prospectus, the company aims to conduct its offer period by Nov. 11 to 17 and is targeting to list at the Philippine Stock Exchange by Nov. 25 under trading symbol “MD.” However, the schedule is still subject to regulatory approvals and market conditions.
“We are excited to work with Medilines in drawing out another opportunity to bring to the capital market an essential and pandemic-resilient business,” said PNB Capital’s Mr. Valenciano. — Keren Concepcion G. Valmonte