SEC OKs AboitizPower’s P30-B bond shelf registration, health-care firm’s IPO plan

The Securities and Exchange Commission (SEC) has approved a P30-billion bond shelf registration planned by Aboitiz Power Corp. and the P1-billion initial public offering (IPO) of hospital operator ACE Medical Center-Palawan.

In its meeting on Feb. 23, the SEC en banc rendered effective the respective registration statements of Aboitiz Power and ACE Medical Center-­Palawan, subject to certain remaining requirements.

AboitizPower was cleared to issue one or more series of retail bonds within three years. For the first tranche, it will offer up to P4 billion of fixed-rate bonds due 2026, with an oversubscription option of up to P4 billion, at face value.

Net proceeds will be used by the company for the redemption of bonds maturing 2021 and for the early redemption of bonds maturing in 2026. It intends to list the fixed-rate bonds on the Philippine Dealing & Exchange Corp.

AboitizPower mandated BDO Capital & Investment Corp., BPI Capital Corp., China Bank Capital, and First Metro Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the offering.

Meanwhile, ACE Medical Center-Palawan will offer 36,000 common shares in 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.

Net proceeds will be used for the construction of ACE Palawan Hospital, debt servicing, purchase of medical equipment and working capital for six months.

The health-care company is currently building an eight-story, 120-bed health-care facility with total floor area of 16,538 square meters in Barangay San Pedro, Puerto Princesa. The project is expected to be completed by the fourth quarter of 2021 or the first quarter of 2022.

Medical specialists of the hospital and their relatives are the target market of this IPO. Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at this hospital. Physicians looking to hold clinic at the hospital must have paid in full 10 common shares plus a “privilege to practice” fee of P150,000.

The hospital operator will provide 32 clinic spaces for 320 medical practitioners, which will be given on a first come, first serve basis.

The IPO also comes with benefits and privileges, such as discounts on medical and dental services, which the stockholder, the stockholder’s spouse, dependents and natural parents may avail of in other medical facilities affiliated with the ACE Group of Hospitals.