The Securities and Exchange Commission (SEC) has approved Allied Care Experts (ACE) Medical Center-Legazpi Inc.’s application to raise P1 billion via initial public offering (IPO).

ACE Legazpi aims to raise P996,592,895 in net proceeds from the offering of 36,000 common shares to fund its expansion.

The shares will be offered in five tranches at an offer price ranging from P200,000 to P362,500. It will be available for every block of 10 shares, in cash or installment, and will be traded over the counter.

The proceeds will be used for building construction (P244 million), medical equipment (P300 million), architects and engineers fee (P47 million), office equipment, furniture and fixtures (P50 million), debt servicing (P170 million), pre-operating expenses (P55.5 million) as well as working capital (P129 million).

ACE Legazpi is developing two, four-story hospital buildings in Barangay Bogtong, Legazpi, which is reportedly going the biggest in the city.

Proceeds from the offering is expected to fund the construction of the project’s first building, seen operational by December 2020. By this time, ACE is expected to be a 172-bed, level II, PhilHealth-accredited hospital.

ACE Legazpi is targeting medical specialists and individuals related to medical specialists for the IPO. SEC said physicians and medical specialists are required to subscribe to the offer shares to practice at the hospital.

“Such stockholders, however, must undergo a screening process and possess the minimum requirements as may be determined by the hospital,” the SEC said.

The offer entails discounts on medical and dental services, which the SEC said the principal investor, his/her spouse, dependents and natural parents may avail in other medical facilities affiliated with the ACE Group of Hospitals.

Following the SEC’s approval of its registration statement, ACE Legazpi’s corresponding order of registration and permit to sell securities will be given upon its compliance with certain requirements.