Maynilad files papers for P 49-B IPO

MANILA, Philippines – Maynilad Water Services Inc. is set to launch in June what is seen to be the largest initial public offering (IPO) in Philippine history as it boosts its capital expenditure program for 2025 to 2026.

The concessionaire said on Monday it had filed a registration statement with the Securities and Exchange Commission and a listing application with the Philippine Stock Exchange for its IPO, which is valued at as much as P49 billion.

In a statement, Maynilad said the offer would consist of 1.81 billion primary common shares, 36.31 million of which would be offered to First Pacific Co. Ltd.

READ: Maynilad plans P49-B IPO this year

It will have an overallotment option of up to 266.31 million common shares in case of high demand, although Maynilad may also upsize its offer by up to 379.3 million common shares.

P20 a share

The IPO will have a maximum offer price of P20 per share. If this is deemed the final price, Maynilad’s debut will top the record P48 billion raised by Monde Nissin Corp. in 2021.

In all, the shares will represent 30.45 percent of Maynilad’s total issued and outstanding capital stock post-IPO.

This is to comply with the company’s concession agreement with the Metropolitan Waterworks and Sewerage System stating that Maynilad needs to offer at least 30 percent of its shares to the public on or before January 2027.

According to Maynilad, proceeds of its offer will be used to fund its capital expenditure program until 2026. This will go to projects related to water, wastewater and customer service and information systems. Part of the proceeds will likewise support general corporate purposes.

July listing

If the IPO application is approved, the offer period will run from June 25 to July 2, with listing tentatively scheduled on July 10.

BPI Capital Corp., HSBC, Morgan Stanley and UBS were tapped as joint global coordinators and joint bookrunners for the offer. BPI Capital Corp., meanwhile, will be the domestic lead underwriter.

Last year, Maynilad president and CEO Ramoncito Fernandez told reporters that they were banking on foreign investors to participate in the IPO.

Maynilad, which is jointly owned by Pangilinan-led Metro Pacific Investments Corp., Consunji-led DMCI Holdings Inc. and Japanese conglomerate Marubeni Corp., serves at least 10 million customers in the West Zone of the Greater Metro Manila area. INQ