Conglomerate’s hospital unit sets IPO


    The hospital unit of one of the country’s conglomerates looks to raise P81.6 billion from an initial public offering (IPO).

    Metro Pacific Hospital Holdings Corp. looks to offer of 35.82 million primary shares and secondary shares of 381.27 million common shares, covering the primary offer, and an additional 40.07 million common covering the greenshoe option.

    At a maximum price of P182 per share, Metro Pacific Hospital will generate P6.5 billion in funding that it will use additional hospitals, cancer centers, clinics and new healthcare businesses; additional investments in the group’s existing hospitals to support their growth; and general corporate purposes.

    The company said its selling shareholder, Metro Pacific Investments Corp. (MPIC) is set to generate P75.1 billion, assuming full exercise of the remaining shares and the overallotment option.

    UBS AG, Singapore branch is the sole global coordinator, while Merril Lynch (Singapore) Pte. Ltd., CLSA Ltd., J.P. Morgan Securities and UBS AG Singapore Branch are the joint international book runners, while First Metro Investment Corp. (FMIC) is the lead domestic coordinator. FMIC, BDO Capital and Investments Corp. and BPI Capital Corp. are the local underwriters.

    MPIC last month said it will be listing its hospital group, to ease some of the pressures brought about by the rising cost of its debt to fund its expansion.

    Manuel Pangilinan, Metro Pacific chairman, was earlier quoted as saying that the fund raising of MPIC and of the hospitals group would result to the reduction in MPIC’s interest cost and a consequent improved translation of operating profit growth into the bottom line.