SEC clears P37-B Maynilad Water IPO
Concessionaire Maynilad Water Services Inc. is all set to debut on the local bourse next month and raise up to P37.41 billion from its initial public offering (IPO), following the approval of the Securities and Exchange Commission (SEC).
In a statement on Monday, the SEC said its commission en banc had approved Maynilad’s IPO covering 1.93 billion primary shares and 354.7 million secondary shares offered for up to P20 each.
Based on its May 14 preliminary prospectus, Maynilad will announce the final price on June 30.
Compared with primary shares, secondary shares are those sold by existing shareholders, allowing them to book profits from their investment.
In this case, Maynilad Water Holding Co. Inc.—a partnership among Pangilinan-led Metro Pacific Investments Corp., Consunji-led DMCI Holdings Inc. and Japan’s Marubeni Corp.—will sell part of its shareholding to the public.
Maynilad also has an overallotment option of up to 249 million shares in case of high demand.
Should this be fully subscribed, Maynilad could raise up to P37.41 billion from its listing, according to the SEC.
“Proceeds will be used to fund Maynilad’s capital expenditures and for general corporate purposes,” the regulator said.
Subject to further approval from the local bourse, the offer period will run from July 3 to 9, and the shares will be listed on the main board of the Philippine Stock Exchange on July 17 under the ticker “MYNLD.”
Bookrunners
BPI Capital Corp., The Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch were tapped as joint global coordinators and joint bookrunners for the offer.
Maynilad, which services the west zone of the Greater Manila area, is required to offer at least 30 percent of its shares to the public on or before January 2027. This is in compliance with its concession agreement with the government through the Metropolitan Waterworks and Sewerage System.
It will be the second company to brave the stock market this year despite global trade tensions after Top Line Business Development Corp., which raised P732 million from its oversubscribed IPO in April.
The Philippine Stock Exchange (PSE) facilitated P42.42 billion in capital raising during the first quarter, representing 51 percent of the full-year 2024 total of P82.4 billion.
PSE president and CEO Ramon Monzon said they were expecting the local equities market to raise an additional P122.81 billion from the IPO of Maynilad and other companies that are set to launch stock rights and follow-on offers later this year, despite market volatility.
