MVP: Maynilad IPO on schedule, talks with investors progressing

MANILA, Philippines — Maynilad Water Services Inc. is on track with its upcoming initial public offering (IPO) which is expected to take place no later than the end of October this year, its chairman Manuel V. Pangilinan said.

Pangilinan said Maynilad is “making much progress” as far as its discussions with cornerstone investors are concerned.

“I think we will be on schedule. It looks like it,” Pangilinan said when asked on Maynilad’s IPO timetable.

Pangilinan earlier said two cornerstone investors are keen on securing a significant amount of shares in the water utility firm’s IPO.

Maynilad’s target listing date was previously adjusted to no later than end-October to accommodate robust potential demand from strategic cornerstone investors.

The investors, Maynilad said, have conveyed strong and sustained interest in participating in the offering, but requested additional time to complete their internal approval processes.

The company was originally aiming to list on the main board of the Philippine Stock Exchange on July 17 under the trading symbol “MYNLD.”

Maynilad, whose new franchise became effective on Jan. 22, 2022, has until Jan. 21, 2027 to list its shares.

The company’s planned maiden offering covers 1.93 billion primary shares and 354.70 million secondary shares.

It intends to offer to the public up to 1.66 billion common shares priced at up to P20 apiece, with an overallotment option of up to 249.05 million shares and a preferential offer of up to 24.90 million shares.

The secondary shares that are part of the offer will be sold by the company’s main shareholder, Maynilad Water Holding Co. Inc.

Assuming the overallotment option and preferential offer are fully subscribed, the Securities and Exchange Commission said Maynilad could net up to P37.41 billion from the IPO, which the company will use to fund capital expenditures and for corporate general purposes.

Maynilad, the concessionaire of the government in providing water services in the West Zone of Metro Manila, is jointly owned by Metro Pacific Investments Corp. (MPIC), DMCI Holdings of the Consunji family and Marubeni Corp. of Japan.

MPIC owns about 53 percent of the water utility firm, while DMCI and Marubeni hold 25 percent and 20 percent stake, respectively.

Maynilad’s IPO could be the third for the year, with Hann Holdings Inc., the operator of Hann Casino Resort in Pampanga, targeting to conduct its IPO by September.

Only one public listing has been conducted so far this year, that of Top Line Business Development Corp. which raised P732.6 million last April.