SEC approves ACE Medical Center’s IPO

MANILA, Philippines — The Securities and Exchange Commission (SEC) has given the green light to Allied Care Experts (ACE) Medical Center-Tacloban Inc. to proceed with its initial public offering (IPO) that could raise as much as P1 billion in fresh capital.

The intended market for this IPO are mostly medical specialists and individuals related to medical specialists.

In a meeting on Sept. 26, the SEC Commission en banc approved the registration statement of ACE Medical Center-Tacloban which covers a total of 228,000 common shares with par value of P1,000 per piece.

ACE Medical Center- Tacloban will offer 36,000 common shares in four tranches at an offer price ranging from P200,000 to P400,000 for every block of 10 shares, in cash or installment. 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- Tacloban, the company said in its registration statement.

Furthermore such stockholders must undergo a screening process and possess the minimum requirements provided in the company’s articles of incorporation, bylaws and internal rules.

In all, ACE expects to raise P987.9 million which it would use for loan payments (P423,264,703), medical equipment (P262,217,148), working capital (P160,650,000), construction (P55,000,000), furniture and fixtures (P49,399,044), pre-operating expenses (P36,950,000) and professional fees of architects and other professionals (P400,000).

ACE Medical Center- Tacloban is building a Level II health care facility in Barangay 78, Marasbaras, Tacloban City.

The 10-story, 152-bed hospital with a total floor area of 14,026 square meters is slated for completion by next month.

ACE Medical Center said physicians looking to hold clinic in the hospital will have to pay a “privilege to practice” fee of P150,000. They will become part of the hospital’s active staff.

Physicians who will not pay the one-time fee will become members of the visiting staff, according to the company.

This means that they may admit patients, but will not be allowed to hold clinic there. They will also be excluded from the decking/ rotation of house and walk-in cases.

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 affiliated with the ACE Group of Hospitals, according to the hospital’s prospectus.

Prior to this, the SEC earlier approved the IPOs of ACE Malolos Doctors, ACE Medical Center- Butuan, ACE Dumaguete Doctors, ACE Medical Center- Gensan and ACE Medical Center Bohol for P1 billion each. It also cleared similar offerings by ACE Medical Center- Cebu and ACE Medical Center- Iloilo.