Medilines Distributors Inc. set the final offer price for its initial public offering at P2.30 per share.
Medilines will raise up to P1.89 billion in proceeds from the sale of up to 825 million common shares, based on the final price offer.
Medilines chairman Virgilio Villar said the IPO would provide investors an opportunity to invest in the fast-growing healthcare industry especially in the time of the COVID-19 pandemic.
“We are now one step closer to our vision of providing the public an investment opportunity that is set to rapidly grow amidst the COVID-19 pandemic and beyond as everyone realizes the importance of the healthcare industry,” Villar said.
Net proceeds from the sale of primary shares amounting to P541 million will be used for working capital in relation to the procurement of existing products and the build-up of medical consumables inventory and debt repayment.
The company allocated P743.1 million to retire debt which was used primarily to fund working capital.
“We believe that pursuing this strategy will increase the overall shareholder value of the company, as this will decrease our financing cost. We further believe that we will still be able to access debt funding from our various relationship banks as the need arises,” Medilines said.
The offer period will be from Nov. 22 to 26, while the shares will be listed on the main board of the Philippine Stock Exchange on Dec. 7.
PNB Capital Corp. is the sole issue manager, lead underwriter and bookrunner for the transaction.
Medilines will be the first pure-play healthcare IPO in the country.
Founded in 2002, Medilines is a leading distributor of medical equipment, with government and private hospitals and healthcare facilities as its main clients.
It maintains a portfolio of best-in-class equipment from multinational brands such as Siemens Healthineers (Germany) for diagnostic imaging, B. Braun (Germany) for dialysis and Varian (USA) for cancer therapy.
