Philippines’ GIC-backed Metro Pacific Hospital reviving US$1 billion IPO: sources
METRO Pacific Hospital Holdings is considering reviving an initial public offering (IPO) 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 US$500 million to US$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. A representative for Metro Pacific did not immediately respond to requests for comment.
A Metro Pacific listing would give a boost to the South-east Asian nation’s IPO market, which hosted US$389 million worth of IPOs last year, down from US$2.47 billion in 2021, according to data compiled by Bloomberg. Poultry company Bounty Agri Ventures is also considering a listing in Manila, Bloomberg News has reported.
At US$1 billion, Metro Pacific’s offering will be the biggest since 2021 when Monde Nissin Corp raked in slightly over US$1 billion in its IPO, the data shows.
Metro Pacific 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 healthcare colleges, primary care clinics and cancer care centres, 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. They 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. BLOOMBERG
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