GIC-backed Metro Pacific Hospital files for Philippines IPO

The company plans to raise up to PHP83.3 billion ($1.6 billion) through the sale of 417.1 million shares – rising to 457.9 million if the overallotment option is fully exercised – at PHP182 apiece. The offering will include 35.8 million in new shares. The proceeds will go towards building hospitals, cancer centers and clinics as well as upgrading existing facilities, according to a filing.

GIC paid PHP3.7 billion for a 14.4% stake in MPHH in 2014, with MPIC holding 85.6%. Reuters reported that several groups, including PE firms, are looking to make a pre-IPO investment, which would see MPIC sell a 40% interest. In May, the parent company said it had dropped plans to list MPHH in favor of offloading a portion of its stake through the private markets. MPIC needed cash to pay down debt.

MPHH has 14 tertiary hospitals – eight in the Manila metropolitan area – with a capacity of 3,200 beds. There are also seven primary care clinics located in shopping malls. It employs 8,373 doctors who see approximately 3.3 million outpatients and 193,800 inpatients every year. The company wants to grow its network to 5,000 beds over the next few years and rollout cancer treatment centers.

MPIC’s healthcare group generated PHP12.9 billion in revenue in 2018, up from PHP10.7 billion the previous year. Net income rose from PHP689 million to PHP909 million over the same period. Power, toll roads and water utilities account for around three-quarters of MPIC’s PHP83 billion in sales to customers outside of the corporate group. MPIC is a subsidiary of Hong Kong-listed First Pacific.

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• Topics
• Southeast Asia
• Healthcare
• IPO
• Philippines
• GIC Private