Maynilad trims IPO maximum price to P15
Maynilad Water Services Inc. has reduced the maximum offer price for its initial public offering (IPO) to P15 per share, valuing its stock market debut at P34.33 billion from as much as P45.8 billion previously.
Maynilad president Ramoncito Fernandez told reporters on Wednesday they opted to trim their maximum offer price from P20 initially after the company had secured the commitment of two cornerstone investors.
These are International Finance Corp. and Asian Development Bank, both of which committed to invest up to $245 million combined at a subscription price of up to P15 per share.
Fernandez said there were other cornerstone investors, although he stayed mum on the details.
Maynilad, which is jointly owned by Manuel Pangilinan-led Metro Pacific Investments Corp., Consunji-led DMCI Holdings Inc. and Japan’s Marubeni Corp., will announce its final offer price on Oct. 20.
The offer period will run from Oct. 23 to Oct. 29 before these are listed on the main board of the Philippine Stock Exchange on or before Nov. 7 under the ticker “MYNLD.”
This is the second time that Maynilad has adjusted its IPO timetable, citing the need to give investors more time to assess its business model in order to make “informed investment decisions.”
Fernandez likewise said this would be their final adjustment.
The West Zone concessionaire is required to offer to the public at least 30 percent of its outstanding capital stock on or before January 2027 as part of its agreement with the government.
Pioneering mark
This development also comes alongside Maynilad’s receipt of the country’s first Philippine Green Equity label.
The Securities and Exchange Commission (SEC) wrote to Maynilad on Sept. 26, saying it had “sufficiently established and demonstrated” its compliance with the regulator’s newly issued guidelines.
Last week, the SEC launched Southeast Asia’s first Green Equity Guidelines, in a bid to attract more capital toward businesses that champion sustainability.
The SEC said the distinction would “enhance the visibility and attractiveness” of companies that actively engage in green activities.
Companies interested in this mark need to be listed on the PSE or are preparing to go public. More than 50 percent of their revenues and investments must be earned or directed toward green activities, while fossil fuel-related revenues must make up less than 5 percent of their top line.
