IFC, ADB poised to pour $245M into Maynilad IPO

Two of the world’s major multilateral institutions may come in as cornerstone investors for the initial public offering (IPO) of Maynilad Water Services Inc. next month, chipping in as much as $245 million combined.

In its latest preliminary prospectus, Maynilad said International Finance Corp. (IFC), the private sector arm of the World Bank Group, had agreed to participate as a cornerstone investor for its IPO. IFC will inject up to $100 million at a subscription price of up to P15 per share.

Asian Development Bank (ADB) is also considering investing up to $145 million, although it clarified that this was still subject to the approval of its board of directors.

“There is no assurance that such approval will be obtained for ADB to sign legally binding documentation for this transaction and participate as cornerstone investor,” Maynilad noted.

These deals, first reported by Manila Standard, come after the concessionaire delayed its stock market debut twice, this time opting to list no later than Nov. 7.

In adjusting its IPO schedule, Maynilad told the Philippine Dealing and Exchange Corp. it sought to accommodate cornerstone investors.

Investor education

It likewise wanted to “allow more time for investor education, ensuring that investors gain a deeper understanding of the corporation and its business model for more informed investment decisions.”

Maynilad, jointly owned by Manuel Pangilinan-led Metro Pacific Investments Corp., Consunji-led DMCI Holdings Inc. and Japan’s Marubeni Corp., plans to raise up to P45.8 billion from its IPO. The offer period will run from Oct. 23 to Oct. 29.

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The local bourse has so far only seen one IPO this year—Top Line Business Development Corp. in April—as market volatility continues to discourage other companies from braving the stock market.

Casino developer Hann Holdings Inc. was supposed to raise P13 billion from its IPO this month, but it has indefinitely suspended this to wait for better market conditions.

As a result of Hann’s postponement, the Philippine Stock Exchange lowered its capital-raising target for the year to as low as P170 billion.

The bourse has also seen two delistings this year: Keppel Philippines Holdings Inc. on July 8 and Philab Holdings Corp. on July 11. Mass housing developer 8990 Holdings Inc. will go private again on Oct. 29.