ACE Medical eyes P1 billion IPO

MANILA, Philippines — The Securities and Exchange Commission (SEC) has approved the application of Allied Care Experts (ACE) Medical Center Legazpi Inc. for a P1-billion initial public offering.

The SEC approved the P1 billion, IPO during its meeting last Nov. 26.

According to its registration statement approved by the SEC’s commission en banc, ACE Legazpi will issue 240,000 shares.

The SEC will issue the corresponding order of registration and permit to sell securities upon the company’s compliance with certain requirements.

“ACE Legazpi will offer 36,000 common shares in five tranches at an offer price ranging from P200,000 to P362,500 for every block of 10 shares, in cash or installment. The shares will be traded over the counter,” according to the registration statement.

The company expects P996.6 million in net proceeds from the IPO.

Of the amount, ACE would use the amount for building construction (P244.2 million) medical equipment (P300 million), architects and engineers fee (P47 million), office equipment, furniture and fixtures (P50 million), debt servicing (P170 million), pre-operating expenses (P55.5 million), and working capital (P129 million).

ACE Legazpi is constructing two, four-story hospital buildings in Brgy. Bogtong, Legazpi City.

Proceeds from the IPO will fund the completion of Building A, which the company targets to operate by December 2020.

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.

According to the registration statement, the intended market for the IPO will comprise mostly medical specialists and individuals related to medical specialists.

Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at ACE Legazpi.

“Such stockholders, however, must undergo a screening process and possess the minimum requirements as may be determined by the hospital,” ACE Medical Center said.     

The offer comes with benefits and privileges such as discounts on medical and dental services, which the principal investor, his/her spouse, dependents and natural parents may avail of in other medical facilities affiliated with the ACE Group of Hospitals, the hospital also said.