October 13, 2021 | 8:46 a.m.
The SEC added and approved the list of recent approvals Medilines distributor [MD 2.45 pre-IPO] plan to sell up to 825 million shares at 2.45 pesos / share to raise just over 2 billion pesos for the company and its owner Virgilio Villar (Manny’s brother).
The proposed schedule was reconfirmed, with the MD offering period being November 11-17 and the MD IPO being on November 25th.
The SEC also approved Sta. Lucia Lands [SLI 2.88 ?0.69%] Follow-up Offer (FOO), which seeks to sell up to 3 billion shares of common stock at a price between P2.38 and P3.29, with the SLI FOO offer period last November 10-19 and the SLI FOO listing on November 26th. November (this SLI data will now be added to the market calendar).
My attitude towards the IPO of MD has not changed, namely that only 27% of the money raised will actually be used to build MD’s business: the rest will go into Virgilio Villar’s pockets and to pay MD’s debts.
This makes going public feel more like a payout than a payout. At least if MD made money, investors could look forward to something beyond the first day of trading.
Maybe there is one aspect of this growth story that I am missing. PNB Capital seems excited about our first “first all-health IPO”, but perhaps we should take their excitement with a grain of salt, considering that as sole issuers, lead underwriter and sole bookrunner, they have a legitimate interest in selling the Shares for the MD IPO.
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