MPIC eyes record P83-B IPO from hospital group

MANILA, Philippines — Metro Pacific Hospital Holdings Inc. has filed an application for its initial public offering to raise up to P83.3 billion.

In a prospectus filed with the Securities and Exchange Commission (SEC), MPHHI’s offering consists of a primary offer of up to 35.8 million common shares and a secondary offer of up to 381.3 million shares with an overallotment option of up to 40.8 million shares.

At a maximum price of P182 per share, MPHHI expects to raise P6.5 billion from the primary offer.

Proceeds from the offer will be used for investments in additional hospitals, cancer centers, clinics and new healthcare businesses; additional investments in the group’s existing hospitals to support their growth; and general corporate purposes.

Assuming full exercise of the overallotment option, the total proceeds for the selling shareholder will be P75.1 billion.

The company tapped UBS as sole global coordinator and joint international bookrunner. Bank of America, CLSA and JP Morgan are the joint international bookrunners.

The IPO is expected to beef up liquidity and pare down debt, officials said.

MPIC chairperson Manuel V. Pangilinan said the only way to address the high debt level of the conglomerate is to sell down assets to create liquidity.

During  the company’s annual shareholders meeting last May, MPIC chairman Manuel V. Pangilinan said the regulatory problems faced by its tollways group, Metro Pacific Tollways Group and the water business, Maynilad Water Services Inc. had affected the share price of MPIC.

Aside from the hospital unit, MPIC is also looking to sell a stake in its tollways business.

MPIC, one of the country’s biggest conglomerates, has investments in tollways and infrastructure, water utility, power, logistics and hospitals.