Metro Pacific Hospital Holdings Inc. is considering reviving an initial public offering in Manila, according to people with knowledge of the matter, after shelving its original plan in 2019.
(Bloomberg) — Metro Pacific Hospital Holdings Inc. is considering reviving an initial public offering in Manila, according to people with knowledge of the matter, after shelving its original plan in 2019.
The Philippines’ largest private hospital group, backed by KKR & Co. and Singapore’s sovereign wealth fund GIC, is weighing buying out minority stakes in some of its hospitals to pave the way for the potential first-time share sale, said the people. Metro Pacific could seek to raise $500 million to $1 billion in an IPO that could take place as soon as the first half of next year, the people said, asking not to be identified as the process is private.
Considerations for the IPO are at an early stage and there is no guarantee Metro Pacific will proceed with the deal, the people said.
Metro Pacific Hospital Chief Executive Officer Harish Pillai said it was premature to talk about an IPO and that the board would decide any such action at the appropriate time, and declined to comment further.
A Metro Pacific Hospital listing would give a boost to the Southeast Asian nation’s IPO market, which hosted $389 million worth of IPOs last year, down from $2.47 billion in 2021, according to data compiled by Bloomberg. Poultry firm Bounty Agri Ventures Inc. is also considering a listing in Manila, Bloomberg News has reported.
At $1 billion, Metro Pacific’s offering will be the biggest since 2021 when Monde Nissin Corp. raked in slightly over $1 billion in its IPO, the data show.
Metro Pacific Hospital has investments in 19 hospitals in the Philippines with a combined bed capacity of about 3,800, and serves an estimated 3.6 million patients a year, according to its website. The company also has backed health-care colleges, primary care clinics and cancer care centers as well a central clinical laboratory.
In addition to KKR and GIC, the hospital operator also counts Metro Pacific Investments Corp. as a shareholder. The infrastructure company hired advisers in 2019 for an IPO, a plan that was delayed when KKR and GIC invested in Metro Pacific Hospital. The firms bought stock as well as bonds that convert into 239.9 million shares either in 10 years or in the event of an IPO, according to an exchange filing.
–With assistance from Andreo Calonzo and Cecilia Yap.
(Updates with CEO response in fourth paragraph.)
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