Medilines officially lists on the PSE

MANILA, Philippines — Medilines Distributors Inc. (Medilines), a leading distributor of medical equipment in the country, officially joined the Philippine Stock Exchange’s roster of listed companies  following its P1.9 billion initial public offering (IPO).

Its share price opened at P1.99 per share and closed at P1.61 apiece, lower than the offer price of P2.30 per share.

PSE president Ramon Monzon said the IPO comes at an opportune time as the global healthcare system takes centerstage because of the pandemic.

“Medilines is the first company to be listed on the PSE that deals directly with the healthcare industry,” Monzon said during the company’s listing ceremony yesterday.

Medilines president and CEO Maria Patricia Yambing said the company remains steadfast in its commitment to make medical equipment available to healthcare providers.

“Today, we took another step to continue that mission through our IPO, marking the first pure-play healthcare IPO,” she said during the ceremony.

Medilines chairman Virgilio Villar, the brother of tycoon Manuel Villar Jr. said there was overwhelming interest from a diverse set of investors – spanning from high quality, long-only domestic institutional investors and thousands of Filipino retail investors from across the world.

Demand for the IPO exceeded P4.7 billion on the back of strong demand across all tranches, resulting in an oversubscription 2.5 times the offer size of P1.9 billion. The offer was for up to 825 million primary and secondary shares.

Monzon said Medilines also had overwhelming demand from local small investors.  It now has 2,899 retail investors from 64 provinces, 16 countries and one territory.

Part of the proceeds from the IPO will be directly used by Medilines for its foray into the high-growth, high-margin medical consumables business to support the growing healthcare industry.

From 2018 to 2020, Medilines revenues grew at a compounded annual growth rate of 11.9 percent to just under P1.5 billion, while net income grew at a CAGR of 16 percent to P103 million.

For the first six months of the year, revenue jumped to P815 million, while net income reached P100 million.

Medilines is a leading distributor of medical equipment to public and private healthcare facilities across the Philippines. It maintains a portfolio of best-in-class equipment from world-renowned brands such as Siemens Healthineers (Germany) for diagnostic imaging, B. Braun (Germany) for dialysis, and Varian (USA) for cancer therapy.