Maynilad spared from bloodbath on listing day
Maynilad Water Services Inc. managed to keep its head above water on its stock market debut, despite a depressing finish for the local stock barometer on Friday.
The Pangilinan-backed firm, which started trading under “MYNLD,” opened trades at P15 per share, the same level as its initial public offering (IPO). It ended the day just losing 2 centavos, closing at P14.98 per share.
“The stock was fairly stable and held firm against the overall negative market reaction to the GDP (gross domestic product) print,” Juan Paolo Colet, managing director at investment bank China Bank Capital Corp.
The Philippine Stock Exchange Index, on the other hand, plunged by 1.31 percent.
Maynilad officials were pleased with the listing result, citing “strong interest” from investors here and abroad, allowing them to rake in about P34.3 billion.
Twelve cornerstone investors backed its market debut.
“Despite all of this overhang that we’re hearing, investors put in the investment and judging from the results of the IPO, I think we made the right decision,” Maynilad president and chief executive officer Ramoncito Fernandez said.
The cornerstone investors include the International Finance Corp., Asian Development Bank, abrdn Malaysian Sdn. Bhd., UK’s Foreign, Commonwealth and Development Office, Maven Investment Partners Ltd., Maybank Asset Management Singapore Pte. Ltd., Robeco Switzerland Ltd. and QRT Master Fund-Torus Fund SP.
Major backers from the local market are BDO Capital & Investment Corp., BPI Asset Management and Trust Corp., Metropolitan Bank & Trust Company–Trust Banking Group and Security Banking Corp.–Trust and Asset Management Group.
Philippine Stock Exchange president Ramon Monzon said the fact that Maynilad managed to entice major investors was “clearly disproving the doomsayer’s claim of foreign investor disinterest in our market.”
Asked about capital financing, Fernandez said the proceeds would support its “very aggressive” spending, bringing global standards to its water services.
Maynilad is the water and wastewater services provider for the West Zone, covering 17 cities and municipalities in Metro Manila and Cavite.
