STI sets initial public offer in Q3

The STI Group is eyeing a possible initial public offering (IPO) in the third quarter of this year that could raise at least $30 million for the group.

This was disclosed over the weekend by STI ExCom chairman Eusebio H. Tanco who said that the IPO offering and listing would be done simultaneously in the Philippine and Singapore Stock Exchanges.

At least 30 percent to 40 percent of primary shares would be put on the block to raise around $30 million, the proceeds of which would be used for further expansion of the STI group’s various subsidiaries which include the Delos Santos-STI Medical Center, an animation company, a medical transcription company, a nursing school, a manpower/staffing agency and a few others.

According to Tanco, the equities market is performing quite well and would be receptive to the STI IPO after the elections in May.

Just recently, the DLS-STI Medical Center invested P250 million to put up a MegaClinic at the SM Megamall.

The SM MegaClinic is the first of a series of planned satellite clinics that the DLS-STI partnership had earlier said it would put up with an allotment of P1 billion.

According to Tanco, with a remaining fund of P750 million, the DLS-STI Medical Center would probably put up two more clinics in Metro Manila before possibly putting up clinics in Metro Cebu and Davao.

The reason for locating within a major shopping mall, Tanco explained, is due to the growing trend of "going to your market."

Nowadays, Tanco pointed, service oriented firms have to locate themselves where the traffic is heaviest rather than waiting for clients/customers to come to you.

The DLS-STI partnership, likewise, noted that the more profitable activities of a hospital are usually the doctors’ consultations, diagnostics services and outpatient treatments rather than the hospital stay.

Having a clinic within a mall also offers convenience to patients’ companions who can while away their time while waiting for the patient undergo consultation or treatment.

The DLS-STI MegaClinic, according to Dr. Joey V. and Efren V. delos Santos, is a full service clinic with up to 150 affiliated doctors and medical practitioners offering a range of medical services, consultations, diagnostic treatments and even emergency treatment.

Eventually, Tanco said, the DLS-STI Medical Center hopes to cater not only to local patients but also to foreign patients engaging in medical tourism.