Capital

SEC Okays IPO of Company Chaired by Manny Villar's Brother

The regulator also gives green light to follow-on offering of Sta. Lucia Land.
ILLUSTRATOR WARREN ESPEJO
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The Securities and Exchange Commission (SEC) has approved two public offerings worth over P11 billion, the regulator announced on Tuesday (October 12). 

The first is the initial public offering of Medilines Distributors Inc., which distributes of medical equipment to both public and private healthcare facilities in the Philippines. Its portfolio, which includes equipment from multinational medical device companies, primarily caters to specialized medicine, including diagnostic imaging, dialysis and cancer therapy.

Medilines plans to sell 550 million primary common shares priced up to P2.45 each, plus a secondary offering comprised of up to 275 million shares held by Virgilio Villar, the company’s chairperson and brother of tycoon Manuel Villar.

The company expects to net P1.28 billion from the sale of the primary shares but will not receive proceeds from the sale of shares by the selling shareholder, which could amount to P641.2 million.

The shares will be listed and traded on the Main Board of the Philippine Stock Exchange, Inc. (PSE).

According to Medilines, proceeds from the offer will be used to finance the company’s working capital in relation to the procurement of existing products and the build-up of its medical consumables inventory, as well as to repay debt. 

The IPO is scheduled to run from November 11 to 17, while the listing will happen on November 25.

Medilines is the sixth company to go public this year. 

Meanwhile, the SEC also approved Sta. Lucia Land’s follow on offering of up to 2.5 billion common shares with an offer price ranging from P2.38 to P3.29 per share, with an oversubscription option of up to 500 million common shares. The shares will be listed and traded on the Main Board of the PSE.

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Assuming the oversubscription option is fully exercised, net proceeds from the offer could reach up to P9.55 billion. The company said it intends to use proceeds from the offer for capital expenditures of new and ongoing projects, payment of short-term debt, strategic land banking, and general corporate purposes. 

The follow-on offering is slated to run from November 10 to 19, with the shares to be listed on the PSE on November 26.

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