The Philippine Stock Exchange (PSE) has approved the initial public offering (IPO) of as much as P2 billion to be launched by medical equipment distributor Medilines Distributors Inc. this November.
Medilines, which is positioning itself as a health-care pure play, is offering up to 550 million primary shares and up to 275 million secondary shares at a maximum price of P2.45 per share.
The IPO price will be finalized on Nov. 16 ahead of the public offering that will run from Nov. 22 to 26.
The stock market debut will bring the company’s public ownership to 30 percent. At the maximum price per share, market capitalization is estimated at P6.74 billion.
Tentative listing on the main board of the PSE is on Dec. 7 under the ticker “MEDIC.”
“The health-care industry has been in the spotlight since this pandemic broke out. We are pleased to see a company in this space tap the stock market for capital-raising. We are hopeful that this IPO will pave the way for other companies in this sector to seek funding from the equities market,” said PSE president and chief executive Ramon Monzon.
Proceeds from the IPO will be used for the procurement of existing products, medical consumables inventory reinforcement and repayment of debt.
Ten percent of firm offer shares will be reserved for local small investors, who may subscribe through the PSE EASy website or mobile application.
Medilines is led by businessman Virgilio Villar, brother of billionaire Manuel Villar Jr.
Founded in 2002, Medilines distributes medical equipment to public and private healthcare facilities in the Philippines. Its portfolio primarily caters to specialized medicine, including diagnostic imaging, dialysis and cancer therapy.
It carries global brands such as Siemens (Germany) for diagnostic imaging products, B. Braun (Germany) for dialysis machines and Varian (USA) for cancer therapy devices.
Medilines mandated PNB Capital and Investment Corp. as sole issue manager, lead underwriter and sole bookrunner for the offer.