SEC clears shares offer of hospital, sugar miller

THE Securities and Exchange Commission (SEC) cleared the maiden public offerings of Allied Care Experts (ACE) Medical Center-Cagayan de Oro, Inc. (CDO) and Central Azucarera de San Antonio, Inc. (CASA).

“In its meeting on Aug. 31, the commission en banc resolved to render effective the registration statements of ACE Medical Center-CDO and CASA covering 240,000 common shares and 1,850,000 common shares, respectively, subject to the companies’ compliance with certain remaining requirements,” the regulator said in a statement on Wednesday.

ACE Medical Center-CDO will be offering 3,600 blocks sold for P200,000 to P400,000 each, which will consist of 10 shares apiece.

The company expects to net P996,696,895 in proceeds for the offer, which will be used for the estimated P778.4-million construction expenses of its Cagayan de Oro hospital, to finance the acquisition of medical equipment, partial payment for a loan, and the hospital’s working capital requirement.

ACE Medical Center–CDO is building an eight-story healthcare facility that can accommodate 176 beds, spanning 21,198 square meters in Barangay Lapasan, Cagayan de Oro City.

The initial public offering (IPO) will be traded over the counter through the hospital’s internal staff, with medical practitioners, their relatives, and the public as their market.

Physicians and medical specialists who will avail of at least one block or 10 shares from the offer will be allowed to practice in the company’s hospital. They may be subjected to restrictions, limitations, and obligations that may be imposed by the company.

Those who wish to practice at ACE Medical Center–CDO are required to subscribe to the offer shares. Physicians who want to hold clinic at the hospital must have fully paid one block or 10 common shares and must have gone through the screening process and minimum requirements prescribed by the hospital.

Subscribers to ACE Medical Center–CDO’s IPO may also avail of benefits such as discounts on medical and dental services, which the stockholder and his dependents may avail of in other medical facilities with ACE Group of Hospitals affiliations.

Meanwhile, CASA will be offering 277,500 common shares to the public, 214,551 of which will be sold by way of a primary offer and 62,949 will be offered by a selling shareholder.

Shares will be sold for up to P2,012.52 each and will be traded over the counter.

The company may net up to P422,043,000 from the primary offer, which will be used to upgrade its cogeneration facility, motor pool, and sugar factory. It will also be used for land acquisitions and farm mechanization, the SEC said.

Meanwhile, the company will not receive proceeds from the sale of secondary shares, which is expected to amount to P115,428,500.

The Chan-owned company primarily operates via its sugar milling business. However, it also dabbles in power generation through a biomass co-generation plant, which has an initial installed generation capacity of 15 megawatts.

CASA’s IPO is being conducted to comply with Republic Act No. 9136 or the Electric Power Industry Reform Act of 2001, which mandates power generation companies not publicly listed to offer and sell at least 15% of their common shares to the public within five years from the effectivity of the Energy Regulatory Commission Resolution No. 4-2019. — Keren Concepcion G. Valmonte

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