Metro Pacific mulls IPO for hospital unit in 2019
METRO PACIFIC Investments Corp. (MPIC) is considering an initial public offering (IPO) for its hospital unit in 2019, as it looks at various options to fund its expansion, a top official said on Friday.
“We would rather stay private in terms of flexibility and central negotiation terms. They don’t want to have the distraction with the management at this stage. For us, it’s more a question on how to achieve our expansion ambitions… and how do we fund that. One of those options is the idea for an IPO,” MPIC Chief Financial Officer David J. Nicol told reporters in a briefing in Makati City last Friday.
The infrastructure conglomerate of businessman Manuel V. Pangilinan had earlier said it will use Metro Pacific Hospital Holdings, Inc. (MPHHI) as the vehicle for the initial public offer of its hospital business.
Mr. Nicol noted that while the general environment for the hospital’s IPO is “very positive in any event,” it is not within their plans at the moment.
“I think our funding plans are set for next year. 2019 it might be. But it’s driven by on what other alternatives on funding plans we can achieve,” Mr. Nicol said.
MPHHI currently has 13 hospitals under its portfolio, with a capacity of over 3,000 beds. Of this network, eight hospitals are in Metro Manila while the remaining five are in the provinces.
The company has targeted to reach 25 to 30 hospitals in the next 10 years, alongside 30 primary care clinics in the next five years.
MPHHI reported a core profit of P927 million in the first six month of 2017, 21% higher year on year. The company’s core earnings before income, tax, depreciation, and amortization, meanwhile, stood at P2.3 billion.
Parent MPIC reported a consolidated core net income of P7.8 billion in the first half of 2017, rising 7% from the P7 billion it delivered in the same period in 2016. The company attributed the increase to its power business, which contributed 55% of MPIC’s operating earnings at P5.3 billion.
Shares in MPIC added a centavo or 0.15% to close last week at P6.69 apiece.
MPIC is one of three key Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT, Inc. Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a majority stake in BusinessWorld through the Philippine Star Group, which it controls.