SEC clears Tagum Global Medical Center IPO

MANILA, Philippines — The Securities and Exchange cleared the plans of Tagum Global Medical Center Inc. to go public in a bid to raise money to fund the construction of its medical facility and pay back old debts.

In a statement on Wednesday, the corporate regulator said it approved the initial public offering of up to P1 billion. The company is a part of the Allied Care Experts Group of Hospitals. 

"Subscribers to the IPO will be given benefits and privileges such as discounts on medical and dental services, which the stockholder, his/her spouse, and dependents may avail of in other medical facilities affiliated with the ACE Group of Hospitals," the SEC said.

Based on filing documents, the IPO will consist of 156,000 common shares. The company said the target subscribers from this IPO are medical practitioners and their relatives, as well as the public.

Likewise, the company will offer 36,000 common shares, equivalent to 3,600 blocks consisting of 10 shares per block.

The primary offering will sell shares in blocks in a series of four. The first tranche will consist of 1,400 blocks at P200,000 each, followed by 600 blocks at P250,000 each. The third and fourth parts of the offer will see 700 blocks to be sold at P300,000 each and 900 blocks at P400,000 each.

The healthcare facility, incorporated in 2018, is currently under construction. The facility in Tagum City, Davao del Norte will feature a seven-story, 116-bed healthcare facility on a 5,000-square meter lot.

Once bought, investors could enjoy benefits and privileges including discounts on medical and dental services, which they or their spouse and dependents could avail from facilities affiliated with Allied Care Experts Group of Hospitals.

Incorporated in 2018, Tagum Global Medical Center is currently constructing a hospital located in Barangay Visayan Village, Tagum City in Davao del Norte.

Aside from funding construction and debt servicing, proceeds from the IPO will be infused into pre-operating expenses and working capital. Tagum Global Medical Center, Inc estimated it could bag net proceeds of up to P997.1 million.