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Stock Comment: SEC Approves Medilines and Sta. Lucia Land FOO

Barkada market

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).

MB BOTTOM-LINE

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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