WEST ZONE water concessionaire Maynilad Water Services is targeting a July 10 listing for its P49.15-billion initial public offering (IPO).
The water provider filed a registration statement with the Securities and Exchange Commission and a listing application with the Philippine Stock Exchange (PSE) for the IPO on Monday, Maynilad said in an e-mail statement.
The offer period is set for June 25 to July 2, based on the company’s indicative timeline.
The IPO will involve up to 2.46 billion common shares at a maximum price of P20 per share, representing 30.45% of Maynilad’s total issued and outstanding capital stock.
The offering consists of 1.78 billion primary common shares, an overallotment option of up to 266.31 million primary common shares, an upsize option of up to 379.29 million common shares, and 36.31 million primary common shares to be offered to Pangilinan-led, Hong Kong-based investment holding firm First Pacific Co. Ltd.
If the indicative terms remain unchanged, Maynilad’s public listing could become the country’s largest IPO, surpassing the P48.6-billion stock market debut of food manufacturer Monde Nissin Corp. in June 2021.
IPO proceeds will be used to fund Maynilad’s 2025–2026 capital expenditure program for water, wastewater, and customer service and information system projects. A portion may also be allocated for general corporate purposes.
Maynilad is one of six IPOs expected by the PSE this year. The water provider has tapped BPI Capital Corp., HSBC, Morgan Stanley, and UBS as joint global coordinators and joint bookrunners for the IPO. BPI Capital Corp. will also serve as the domestic lead underwriter.
Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the West Zone service area of Metro Manila and Cavite province.
The law also requires Maynilad to offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.
Maynilad serves parts of Manila, Quezon City, and Makati, as well as Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas, and Malabon. It also supplies water to the cities of Cavite, Bacoor, and Imus, and the towns of Kawit, Noveleta, and Rosario in Cavite province.
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave