BIZ BUZZ: Roadshows augur well for Maynilad’s P49-B IPO
Some people may find it ironic. What could be the country’s largest initial public offering (IPO) is coming to market at a time of unprecedented geopolitical tension as well as global economic uncertainties under Trump 2.0.
But from what we hear, the P49-billion stock market debut planned by Maynilad Water Services Inc. is a go by the third quarter of this year.
Top officials of Maynilad have been conducting non-deal roadshows across the globe recently to introduce the company—and they like what they hear from institutional investors on the ground.
“[There’s] high demand,” a source privy to the offering told Biz Buzz.
Since any equity deal is ultimately dependent on whether or not it is warmly received by institutional investors, Maynilad seems more confident about braving the market.
Based on its latest prospectus, the offering will run from June 25 to July 2, subject to further regulatory approval.
At the same time, Maynilad, being a utility company, is a defensive stock and its business essential to households, commercial and institutional users.
By a stroke of luck, the water utility arm of tycoon Manuel V. Pangilinan is also coming at a time that the trade tension between the United States and China seems to have deescalated.
Maynilad is pitching itself to the market as a “pure-play” sustainable water and wastewater solutions provider for the “West Zone,” which spans 11 cities in Metro Manila, as well as three cities and three municipalities in Cavite.
Its concession in Metro Manila covers 540 square kilometers with a population of more than 10.4 million people. The Pangilinan-led consortium has run the utility for 17 years, growing it into one of the largest private water companies not just in the Philippines but within Southeast Asia, according to GlobalData.
