MPIC hospital unit sets P83-B IPO
Infrastructure holding firm Metro Pacific group is seeking regulatory approval for the planned P83-billion stock market debut of its hospital business, which would likely be the largest equity deal to be executed through the local exchange.
By selling a mix of primary and secondary shares, this equity deal will raise fresh funds for Metro Pacific Hospital Holdings Inc. (MPHHI), operator of the largest hospital chain in the Philippines, while executing an asset selldown for parent conglomerate Metro Pacific Investments Corp. (MPIC).
Based on a prospectus filed in the Securities and Exchange Commission dated Sept. 4, MPHHI seeks authority to sell as much as 457.86 million shares at a maximum price of P182 per share.
The bulk of the proposed deal consists of a maximum of 381.27 million secondary common shares. Including an over allotment option of up to 40.77 million shares, parent conglomerate MPIC can generate as much as P75.1 billion from the deal.
The offer also includes 35.82 million in primary shares, which means that as much as P6.5 billion in fresh capital will flow into MPHHI.
MPIC will reduce its stake from 85.62 percent to 16.57 percent after the offer, assuming the full exercise of the over allotment option. It will lock up its remaining shares for 180 days after the offering.
Existing institutional investor Arran Investment Pte. Ltd., a unit of Singapore’s sovereign wealth fund GIC, will lock up its 14.38-percent stake for 365 days poststock offering.
UBS, Bank of America Merrill Lynch, CLSA and JP Morgan were mandated to be the sole global coordinator and joint international bookrunners for the offering.
Local investment houses First Metro Investment Corp., BDO Capital and Investment Corp. and BPI Capital Corp. were named joint domestic lead underwriters.
Subject to regulatory approvals, the initial public offering (IPO) is scheduled to run from Nov. 18 to 22 while listing on the Philippine Stock Exchange under the trading symbol “HOSP” is targeted for Dec. 2 this year.
Proceeds from the sale of primary shares will be used to invest in additional hospitals, cancer centers, clinics and new health care businesses.
For its part, parent firm MPIC has been planning to sell a portion of its stake in the hospital and toll road businesses to fund the group’s expansion program without incurring heavier debt in the coming years.
MPHHI operates 14 tertiary hospitals with 3,200 beds across the country, including Makati Medical Center, Asian Hospitals, Cardinal Santos Medical Center and Davao Doctors Hospitals. The plan is to grow the network to 5,000 beds in the next few years, invest in a chain of cancer treatment centers, and build a brand-new hospital for children in Metro Manila.
