By Keren Concepcion G. Valmonte, Reporter
MEDILINES Distributors, Inc. on Wednesday set its initial public offering (IPO) price at P2.30 per share, lower by 6.12% than the price-ceiling it set. It could raise up to P1.9 billion from the sale of 825 million shares to the public.
“The final offer price seems to have been offered at around a 6% discount from the initial maximum offer price of up to P2.45,” Timson Securities, Inc. Trader Darren Blaine T. Pangan said in a Viber message.
“Positioned as a pure-play healthcare IPO, this may further spark interest among investors to participate in the offering, especially amid the current environment with a lot of listing activities going on in the local scene,” he added.
Medilines Distributors, founded in 2002, is in the business of distributing medical devices used for diagnostics imaging, dialysis, and cancer therapy. It carries brands such as Siemens, B. Braun, and Varian.
The company’s primary offer is comprised of 550 million common shares, net proceeds of which will be used to finance the working capital for the procurements of its existing products, for building its medical consumables inventory, and to repay debt.
Meanwhile, Medilines Distributors Chairman Virgilio B. Villar will be offering 275 million common shares for the secondary offer. The company will not receive proceeds from the sale of Mr. Villar’s shares.
According to its preliminary prospectus dated Oct. 27, the company plans to run the offer period from Nov. 22 to 26, while its listing at the main board of the exchange is slated for Dec. 7 under ticker symbol “MEDIC.”
The company tapped PNB Capital and Investment Corp. to be the sole issue manager, lead underwriter, and sole bookrunner for the offer.