On September 4, Metro Pacific Hospital Holdings Inc. (MPHH), the hospital unit of Metro Pacific Investments Corporation (MPIC), filed an application for an initial public offering with the Securities and Exchange Commission. This is a day after Cal-Comp Technology Philippines Inc. organized its plan to launch an initial public offering in the coming months of this year. Indeed, this is the year where good companies are starting to embrace the idea of IPO. Earlier this year, we’ve received the news about AllHome and Kepwealth planning to launch their IPO. If all of this is approved, there will be new stocks to buy in the market.
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The primary offer of MPHH includes 35,821,919 common shares while the second offer is comprised of 381,271,010 common shares with an overallotment option of up to 40,771,095 common shares. This will be listed on the main board of the Philippine Stock Exchange. The price per share would be P182 and per the company’s prospectus filed with SEC, in case of the full exercise of the overallotment option, P75.1 billion will be the total proceeds of MPIC from this IPO. The offer period will begin on November 18 through November 22 and will be traded and listed under the trading symbol HOSP.
MPHH expects to raise up to P6.5 billion from this IPO which will be used to add hospitals, clinics, cancer centers, and new healthcare businesses. This is just an estimation from the primary offering. The fund to be raised will also be used to finance additional investments in the existing hospitals of the group in order to sustain their growth and support the general corporate purpose of the firm. It’s truly surprising news coming from MPIC after it turned down its plan to launch an IPO for MPHH.
Last May, MPIC turned down its plan to put its hospital unit in the stock exchange. In fact, it was about to sell 40% of MPHH stake valued at $2 to $2.5 billion and planned to focus on its interests in power, tollways, water, and logistics. These have been the businesses of MPIC as what we’ve seen it. The deal to sell MPHH stock could have been the biggest healthcare deal in the country. Currently, MPIC owned 85.6% of MPHH stake. The hospitals under MPHH include Asian Hospital and Medical Center, Makati Medical Care, Cardinal Santos Medical Center, and 10 others located mostly in Metro Manila and in the provinces.