Tagum Global Medical Center receives SEC approval for P1B IPO
The hospital operator, under the Allied Care Experts (ACE) Medical Group umbrella, is looking to raise P1 billion through the sale of 36,000 shares at between
P20,000 and P40,000 per share.
Proceeds will be used to complete Tagum Global Medical Center's [TGMC 400,000.00 pre-IPO] 179-bed hospital in Tagum City, Davao del Norte.
The company is also building a tertiary medical center in Tagum City. While the SEC has approved the IPO, TGMC doesn’t plan to list the shares publicly on the PSE’s exchange; instead, the shares will be made available for purchase “over the counter” by transacting directly with TGMC’s bookkeeper.
IPO purchasers will be entitled to a range of unique perks, including hefty discounts on a menu of medical and dental procedures for the stockholder and their spouse and family members.
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While TGMC mostly intends to sell the shares to “medical specialists and individuals related to medical specialists”, they are technically still available to the public.
I just wanted to underline here that the PSE isn’t the only way for a company to sell its shares to the public, it just happens to be the most high-profile and efficient way for a company to raise equity funding.
When I say ‘efficient”, I mean that to buy shares in a PSE-approved IPO, all I’d have to do is send money to my broker from my broker account, and if I wanted to sell the stock to someone else, the PSE’s infrastructure would quickly and easily perform the role of matchmaker to pair my sell order up with a buy order at the same price, with all of the share and money exchange happening silently in the background.
With over-the-counter stocks, shareholders have none of that infrastructure working to their advantage.
If a TGMC buyer wants to sell their shares, they have to find a buyer, and they have to negotiate the price, and settle the transfer.
Nothing happens automatically. It’s like the “black and white” part of an infomercial for knives, where the sweaty, confused-looking woman smashes tomatoes all to hell with the side of the blade-like she learned to cut food from an alien.
All I’m saying is, once you dabble in over-the-counter stock buying once, you never take what the PSE offers for granted again. Haha.
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Merkado Barkada's opinions are provided for informational purposes only, and should not be considered a recommendation to buy or sell any particular stock. These daily articles are not updated with new information, so each investor must do his or her own due diligence before trading, as the facts and figures in each particular article may have changed.
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