The Securities and Exchange Commission has approved the maiden public offerings of Allied Care Experts Medical (ACE) Center-Cagayan de Oro Inc. and Central Azucarera de San Antonio Inc. (CASA).
In its en banc meeting on Tuesday, the agency approved the registration statements of ACE Medical Center CDO involving the sale of 240,000 common shares and CASA covering the registration of some 1.85 million common shares.
ACE Medical Center-CDO will offer 3,600 blocks composed of 10 shares each, with a price ranging from P200,000 to P400,000 per block. The shares will be traded over the counter through the hospital’s internal staff.
The company expects to net P996.69 million from the offer.
Proceeds from the initial public offering (IPO) will be used for construction of its hospital in Cagayan de Oro estimated at P778.4 million, the acquisition of medical equipment, the partial payment of a loan, as well as for the hospital’s working capital requirement.
The intended market for the IPO will be medical practitioners and their relatives, as well as the public, according to its registration statement.
Physicians and other medical specialists who will subscribe to at least one block or 10 shares from the offer will be allowed to practice in the company’s hospital, subject to restrictions, limitations and obligations as may be imposed by hospital.
ACE Medical Center-CDO is currently constructing an eight-story, 176-bed healthcare facility covering a floor area of 21,198 square meters in Barangay Lapasan, Cagayan de Oro City.
Subscribing to the offer shares is a prerequisite for physicians and medical specialists to practice at the hospital. Physicians looking to hold clinic at the hospital must have paid in full one block or 10 common shares and must have undergone the required screening process and minimum requirements prescribed by the hospital.
Subscribers to the IPO will also be given benefits and privileges, such as discounts on medical and dental services, which the stockholder, the spouse dependents and natural parents may also avail in other medical facilities affiliated with the ACE Group of Hospitals.
Meanwhile, CASA will offer 277,500 common shares, consisting of 214,551 new common shares by way of a primary offer and 62,949 secondary shares offered by a selling shareholder, priced at up to P2,012.52 per share. The shares will be traded over the counter.
The company is conducting the offering pursuant to Republic Act 9136, or the Electric Power Industry Reform Act of 2001, which mandates generation companies that are not publicly listed to offer and sell to the public not less than 15 percent of their common shares within five years from the effectivity of Energy Regulatory Commission Resolution No. 4-2019.
Antonio Steven L. Chan, the brother of singer Jose Mari Chan, founded the company and has been its president since 2008. The company primarily operates a sugar milling business, but it also engaged in power generation through a biomass co-generation plant with an initial installed generation capacity of 15 megawatts.
Net proceeds from the primary offer is estimated at P422.04 million which CASA will use for the upgrading of its cogeneration facility, motor pool and sugar factory, as well as for land acquisition and farm mechanization.
CASA will not receive proceeds from the sale of secondary shares, which is expected to yield P115.42 million.
The company engaged SB Capital Investment Corp. as the issue manager and underwriter for the offer.