TAGUM GLOBAL FILES P1- B IPO

TAGUM Global Medical Center Inc. seeks to raise as much as P1 billion from its initial public offering (IPO) to fund its capital expenditures.

IN A PROSPECTUS fiLED WITH THE Securities and Exchange Commission, the hospital said the offering consisted of 36,000 common shares — to be sold by 3,600 blocks or 10 shares per block — with offer prices ranging from P200,000 to P400,000.

These blocks are set to be offered in tranches through a series of offerings.

The net proceeds will be allocated for construction and development, medical equipment and pre-operating expenses.

The bulk or nearly 67 percent of the proceeds are earmarked for construction and development costs, which shall be spent within THE fiRST QUARTER UNTIL 2022.

The construction, development and pre- opening operations would also be backed by a P650-million credit line facility with the Development Bank of the Philippines.

The first loan, amounting to P500 MILLION, WILL PARTIALLY fiNANCE the construction of the hospital. It has a tenor of 12 years and annual interest rate of 6 percent.

The acquisition of medical equipment, meanwhile, is eyed for the fourth quarter of 2022.

The other loan, worth P150 million, is for the partial funding of hotel machinery and EQUIPMENT ACQUISITION. ITS fiXED rate will be based on prevailing market rate while tenor is set at seven years.

Tagum Global Medical Center was established in April 2018 to maintain and operate hospitals, medical and related healthcare facilities and businesses.