2019 is a year of initial public offering (IPO). Companies such as Kepwealth, AllHome, and Fruit had a good debut in the stock market during the launching of their IPO. As we approach the end of the year, there’s one more company to include in the list—the Allied Care Experts (ACE) Legazpi. ACE Legazpi is a member of the ACE Medical Group that has just received approval to launch its P1 billion IPO from the Securities & Exchange Commission. If you are curious about this, let me share with you some of the essential parts of this news.
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The application of Ace Legazpi for IPO included its registration for 240,000 shares and issuance of securities upon completion of all the requirements required. The initial prospectus of the company, which is published on its official website, states that it will sell 36,000 common shares or 3,600 blocks with 10 shares per block. Per the prospectus, a block costs P200,000 to P362,500. The offering will be in 5 portions and the company plans to sell the shares at an increased offer price in different periods. The expected fund to be raised from this IPO is about P996.53 million.
Per the disclosure of SEC, the company targets medical specialists and individuals with the same line of work. A requirement to subscribe to the shares of ACE Legazpi is that the physicians and medical specialists should want to work at ACE Legazpi. The net amount of funds to be raised, which is about P996.53 million, will be used to develop and construct the hospital, pay the existing loans of the firm, add working capital, and procure medical equipment. Different purposes are set. As an investor, you must be aware of the uses of funds.
The disclosure of SEC includes the plan of ACE Legazpi to expand in Brgy. Bogong, Legazpi City. The company is constructing two four-story hospitals in the city and the funds to be generated from the initial public offering will help the company complete the first building which will operate by the end of 2020. ACE Legazpi envisioned that it will be the biggest private hospital in Legazpi City. It will have 172 beds, 2 stories and will honor Philhealth as part of its services. Patients from the near communities can utilize the treatment services to be offered by the said hospitals.