THE Securities and Exchange Commission (SEC) has approved the registration of Allied Care Experts (ACE) Medical Center-Legazpi Inc. for its P1-billion initial public offering (IPO).
The SEC’s commission en banc approved the application of ACE Legazpi to issue a total of 240,000 shares.
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.
The company expects to raise some P996.6 million in net proceeds, which will be used for building construction at P244.24 million; medical equipment at P300 million; architects and engineers fee at P47 million; office equipment, furniture and fixtures at P50 million; debt servicing at P170 million; pre-operating expenses at P55.5 million; and working capital at P129.79 million.
ACE Legazpi is constructing two four-story hospital buildings in Barangay Bogtong, Legazpi City. Proceeds from the IPO will fund the completion of Building A, which the company targets to operate by December next year.
ACE Medical Center-Legazpi is envisioned as the biggest private hospital in Legazpi City. It will be a 172-bed, level two, PhilHealth-accredited hospital catering to patients from neighboring communities needing further treatment and management.
The intended market for the IPO are 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. The stockholders, however, must undergo a screening process and possess the minimum requirements as may be determined by the hospital.
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 themselves of in other medical facilities affiliated with the ACE Group of Hospitals.