SEC approves IPOs of Tarlac power utility, Aklan hospital

 SEC approves IPOs of Tarlac power utility, Aklan hospital

THE Securities and Exchange Commission approved of the initial public offerings (IPO) of Tarlac Electric, Inc. and Asia Pacific Medical Center (APMC)–Aklan, Inc., both of which will be offered over the counter.

The registration statements of Tarlac Electric, which covers 5.75 million common shares, and of AMPC-Aklan with 240,000 common shares, have been rendered effective by the commission en banc on June 24.

Tarlac Electric will offer 1.75 million common shares priced at P380 each over the counter.

It expects to net P642.52 million from the IPO. Proceeds will be used to pay for short-term loans, finance its capital expenditure projects, and for its general working capital.

These shares will not be traded at the local bourse.

Tarlac Electric’s offer is made available to comply with Republic Act No. 10795 or the electricity provider’s franchise, requiring the company to offer to the public 30% of its outstanding shares.

The offer must be made on or before the fifth year since it started its operations. Its offering is also being done pursuant to Republic Act No. 9136, or the Electric Power Industry Reform Act.

For the IPO, the company assigned Penta Capital and Investment Corp. as the sole underwriter.

Meanwhile, AMPC-Aklan will be offering 35,420 shares equivalent to 3,600 blocks or 10 shares per block. Its offer price will range between P250,000 to P350,000 per block.

The shares will also be traded over the counter, with medical specialists and their relatives as the company’s target market.

AMPC-Aklan expects to net P983.03 million from the offer, which will be used to construct a seven-story hospital.

Aside from earning dividends, medical specialists who will subscribe to the shares will qualify them to practice at the hospital, subject to pre-qualification procedures.

The company is currently building a P1.3-billion, 216-bed health care facility, which will feature doctors’ or dentists’ clinics, an office area for the health maintenance organization, an administration office, parking lots, a commercial area and waiting areas for patients.

The hospital project is expected to be completed by the second quarter of 2023. — Keren Concepcion G. Valmonte