The Securities and Exchange Commission said it approved the P1-billion initial public offering of ACE Medical Center-Butuan Inc., a member of hospital chain Allied Care Experts (ACE) Group.
The SEC in an en banc meeting approved the registration statement of ACE Medical Center-Butuan covering 228,000 shares with a par value of P1,000 apiece.
The registration statement covers 36,000 common shares, which ACE Medical Center-Butuan will offer to the public at a price ranging from P200,000 to P400,000 for every block of 10 shares.
ACE Medical Center-Butuan will offer the first 600 blocks at P200,000, the next 900 blocks at P250,000, the following 1,850 blocks at P300,000 and the remaining 250 blocks at P400,000.
The company will use the net proceeds from the offering to finance the construction of a hospital building, purchase of medical equipment, pre-operating expenses and debt servicing.
ACE Medical Center-Butuan is building a second multidisciplinary health care facility at South Montilla Boulevard, Villa Kananga, Butuan City. It will provide services to residents of Butuan City and nearby municipalities.
As of May 31, the construction of the eight-story, 176-bed hospital with a total floor area of 20,370 square meters is 42.47 percent complete. The hospital expects to inaugurate the hospital in May 2021.
The intended market for the IPO are mostly medical specialists and individuals related to them. The shares will be traded over the counter.
Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at ACE Medical Center-Butuan.
Such stockholders, however, must undergo a screening process and possess the minimum requirements provided in the company’s articles of incorporation, bylaws and internal rules.
The offer comes with benefits and privileges, such as discounts on medical and dental services, which the principal investor, his/her spouse, dependents and natural parents may avail of in other medical facilities that have entered into a memorandum of agreement with ACE Medical Center-Butuan.
The SEC earlier approved the maiden offerings of ACE Malolos Doctors Inc. valued at P1 billion and ACE Medical Center Iloilo Inc. worth P1.44 billion.