WEST ZONE water concessionaire Maynilad Water Services, Inc. has started the offer period for its initial public offering (IPO) after securing the permit to sell from the Securities and Exchange Commission (SEC).
The company set the final offer price at P15 per share, with the IPO covering 1.66 billion common shares to be sold to the public and 24.9 million primary shares allocated to First Pacific Co. Ltd.
Based on the final offer price, the IPO could raise as much as P34.3 billion in gross proceeds.
The offer period runs from Oct. 23 to 29, while the company’s shares are expected to be listed on the Philippine Stock Exchange’s Main Board on Nov. 7 under the ticker symbol MYNLD, the company said in a statement on Thursday.
The offering also includes an overallotment option of up to 249.05 million primary shares and an upsize option of up to 354.7 million secondary shares to be offered by Maynilad Water Holding Co., Inc. (MWHCI).
“The proceeds from the offer will be used to fund Maynilad’s capital expenditure requirements and for general corporate purposes,” the company said. It added that it “will not receive any proceeds from the sale of MWHCI’s shares in the event that the upsize option is exercised.”
BPI Capital Corp. serves as the domestic lead underwriter, while The Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch act as international underwriters, the company said.
The International Finance Corp. (IFC) and Asian Development Bank (ADB) are the lead cornerstone investors, according to Maynilad. Other domestic cornerstone investors include BDO Capital & Investment Corp., BPI Asset Management and Trust Corp., Metropolitan Bank & Trust Co. – Trust Banking Group, and Security Bank Corp. – Trust and Asset Management Group.
Maynilad also identified international cornerstone investors such as abrdn Malaysia Sdn. Bhd., the United Kingdom Foreign, Commonwealth, and Development Office, Maven Investment Partners Ltd. – Hong Kong Branch, Maybank Asset Management Singapore Pte. Ltd., Robeco Switzerland Ltd., and QRT Master Fund SPC – Torus Fund SP.
In a Viber message, AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said the IPO is expected to draw investor interest “given its reasonable pricing and the defensive nature of Maynilad’s business.”
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of 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., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — A.G.C. Magno