The Securities and Exchange Commission (SEC) has approved two new initial public offerings (IPOs)—a P665-million offering planned by electricity distributor Tarlac Electric Inc. (TEI) and a P1.26-billion offering by hospital operator Asia Pacific Medical Center (APMC)-Aklan Inc.
The respective IPOs will bring in more than 19 investors as shareholders, making these two companies publicly owned. However, shares of both companies will be offered over the counter and will not be traded on the Philippine Stock Exchange.
Registration
In its meeting on June 24, the SEC approved the registration statements of TEI covering 5.75 million shares and of APMC-Aklan covering 240,000 common shares, subject to compliance with remaining requirements.
TEI will offer 1.75 million common shares for up to P380 each, bringing 30 percent of its outstanding shares to public hands.
The offering is being made pursuant to Republic Act No. 10795, or Tarlac Electric’s Franchise, which requires the company to offer 30 percent of its outstanding capital stock to Filipino citizens on or before the fifth year from start of operations. This is also in compliance with the requirements under Republic Act No. 9136, or the Electric Power Industry Reform Act.
TEI expects to net P642.52 million from the offer, which will be used to retire short-term loans as well as fund capital expenditure projects and general working capital.
Penta Capital
Penta Capital and Investment Corp. was mandated as sole underwriter for TEI’s equity deal.
APMC-Aklan, for its part, will offer 35,420 shares, equivalent to 3,600 blocks or 10 shares per block at an offer price ranging from P250,000 to P350,000 per block.
Proceeds from this offering will be used to complete the construction, development and operation of its hospital.
APMC-Aklan is currently constructing a seven-story, 216-bed health-care facility worth P1.3 billion. The project is slated for completion by the second quarter of 2023.
The hospital will include doctors/dentists’ clinics, office area for the health maintenance organization, administration office, parking lots, commercial area and waiting areas for patients. Medical specialists and their relatives are targeted for this IPO. Subscription to the shares will qualify the medical specialists to practice at the hospital, subject to prequalification procedures, aside from earning dividends that may be declared. —Doris Dumlao-Abadilla