Manny Villar's brother secures PSE approval for ₱2-B IPO

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Metro Manila (CNN Philippines, October 21) — The target of Medilines Distributors, Inc. to go public within the year has gained the corporate regulator's go signal.

The Philippine Stock Exchange (PSE) said in a statement Thursday that its board of directors cleared the firm's maiden offering, only over a week after the Securities and Exchange Commission greenlit its initial public offering of as much as ₱2 billion.

"The healthcare industry has been in the spotlight since this pandemic broke out. We are pleased to see a company in this space tap the stock market for capital raising," PSE president and chief executive officer Ramon S. Monzon was quoted in a statement.

Medilines distributes medical equipment to public and private medical facilities focused on cancer therapy and diagnostic imaging. Its chairman, Virgilio Villar, is the brother of billionaire and former lawmaker Manuel B. Villar.

"We are hopeful that this IPO will pave the way for other companies in this sector to seek funding from the equities market," Monzon added.

Medilines is planning to offer to the investing public up to 825 million primary and secondary shares for ₱2.45 each at most.

The final offer price will be set on November 16. The offer is slated to run from Nov. 22 to 26, the local bourse noted.

Proceeds from the fundraising will be used to finance the purchase of existing products and build up its medical consumables inventory. Part of it will be also be allotted for debt repayment.