CONGLOMERATE Metro Pacific Investments Corp. said Friday it may consider plans for an initial public offering of its hospital arm Metro Pacific Hospital Holdings, Inc. (MPHHI) to finance expansion.
“Truthfully, the general environment for the IPO for the hospital [group]is very positive in any event,” MPIC Chief Finance Officer David Nicol told a news briefing in Makati City.
“But our motivation at the moment is not really driven within the hospital group. We would rather stay private in terms of flexibility and central negotiation terms,” he added.
“They don’t want distraction with the management at this stage. For us it’s more a question on how to achieve our expansion ambitions particularly on the tolerance side, where we’re putting a lot of capital and how do we fund that and one of those options is the idea for an IPO.”
MPIC noted that funding plans for the hospital group are set either for next year or in 2019 with other alternative plans.
For the first half of the year, MPIC said its hospital group posted an aggregate core net income of P927 million, an increase of 21 percent from last year. The hospital group contributed 24 percent or P308 million to MPIC’s core net income in the first half of 2017 compared to P249 million in the same period last year.
In January this year, MPHHI announced the signing of an agreement to infuse nearly P133 million into Delgado Clinic, Inc. (DCI) through a subscription of preferred shares representing 65 percent of the total expanded capital stock of DCI.
DCI owns and operates the Dr. Jesus C. Delgado Memorial Hospital (JDMH) in Quezon City.
“The cash infusion from MPHHI will enable the 68-year-old JDMH to upgrade its equipment and facilities and expand its capacity to serve its surrounding communities,” MPIC said.
As of end-June, MPHHI has grown to 13 hospitals with an aggregate of 2,900 beds throughout the country.