SEC approves Ace Medical Center-Butuan IPO plan
The Securities and Exchange Commission (SEC) has planned an initial public offering worth up to P1 billion planned by ACE Medical Center-Butuan Inc., which is part of the individual fund-raising activities of hospital operators under the ACE Medical group.
In its meeting on June 20, the SEC en banc approved the registration statement of ACE Medical Center-Butuan covering 228,000 shares. The hospital plans to offer 36,000 common shares to the public at a price ranging from P200,000 to P400,000 for every block of 10 shares, payable in cash or installment.
ACE Medical Center-Butuan is building an eight-story 176-bed multidisciplinary health care facility at South Montilla Boulevard, Villa Kananga, Butuan City, which intends to serve residents of Butuan City and nearby municipalities.
As of May 31, the construction of the hospital, which will have a total floor area of 20,370 square meters, is 42.47 percent complete. ACE Medical Center-Butuan expects to inaugurate the hospital by May 2021.
This offering targets mainly medical specialists and individuals related to medical specialists. The offer shares will be traded over the counter.
Subscription to the offer shares is a prerequisite for physicians and medical specialists to practice at ACE Medical Center-Butuan. Such stockholders, however, must undergo a screening process and possess the minimum requirements provided in the company’s articles of incorporation, bylaws and internal rules.
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 that have entered into a memorandum of agreement with ACE Medical Center-Butuan.
The Butuan hospital will offer the first 600 blocks at P200,000, the next 900 blocks at P250,000, the following 1,850 blocks at P300,000 and the remaining 250 blocks at P400,000.
About 30 percent of the IPO proceeds will fund construction and another 30 percent will be used to purchase medical equipment. Some 20 percent was earmarked for preoperating expenses and 10 percent for debt servicing.—DORIS DUMLAO-ABADILLA
