Maynilad IPO gets PSE OK

MANILA, Philippines — The Philippine Stock Exchange Inc. (PSE) has cleared Maynilad Water Services Inc.’s planned initial public offering (IPO) this month, which has attracted more international cornerstone investors.

Maynilad has submitted its preliminary prospectus for its upcoming IPO with the Securities and Exchange Commission (SEC) and the PSE, paving the way for the start of its roadshow to institutional investors in the coming days.

The PSE announced yesterday that it has approved Maynilad’s IPO of up to 2.29 billion common shares at an offer price of up to P20 per share.

The IPO consists of up to 1.66 billion primary common shares to be issued and offered to the public, up to 24.9 million primary common shares to be allocated and offered to First Pacific Co. Ltd., overallotment option shares of up to 249.05 million primary common shares as well as upsize option shares of up to 354.7 million secondary common shares to be offered by Maynilad Water Holding Co. Inc.

With the International Finance Corp. (IFC) and the Asian Development Bank (ADB) serving as lead cornerstone investors, Maynilad’s latest preliminary prospectus showed six other international cornerstone investors, including the United Kingdom’s Foreign, Commonwealth and Development Office, acting through its Mobilising Capital through Listed Products (MOBILIST).

The participation of MOBILIST as a cornerstone investor in the offer is subject to the finally determined offer price not exceeding P15 per common share.

Also participating in the offer are abrdn Malaysia Sdn. Bhd., a fund management company incorporated under the laws of Malaysia providing asset management services; Maven Investment Partners Ltd., a proprietary trading firm incorporated under the laws of England and Wales; the Maybank Group’s fund management arm Maybank Asset Management Singapore Pte. Ltd.; global asset management firm Robeco Switzerland Ltd. and QRT Master Fund–Torus Fund SP.

The IFC and the ADB are looking to invest up to $245 million in Maynilad as cornerstone investors for its upcoming P45.77-billion IPO.

IFC has agreed to participate as a cornerstone investor in the offer, with an investment size of up to $100 million in peso equivalent, at a subscription price of up to P15 per offer share, subject to certain closing conditions and customary requirements.

Meanwhile, the ADB is currently considering participating as a cornerstone investor in the offer, with a potential investment size of up to $145 million in peso equivalent, at a subscription price of up to P15 per offer share.

Joining as domestic cornerstone investors are BDO Capital & Investment Corp., BPI Asset Management and Trust Corp., Metropolitan Bank & Trust Co. and Security Bank Corp-Trust and Asset Management Group.

The offer period for Maynilad’s IPO is scheduled from Oct. 23 to 29, with Maynilad targeting a listing date of Nov. 7.

Maynilad said the submission of its preliminary prospectus forms part of the company’s ongoing compliance with regulatory requirements in connection with the proposed IPO.