Maynilad delays IPO on investors’ request
Upon the request of investors, Maynilad Water Services Inc. has put off its P37.41-billion initial public offering (IPO) to October. The market debut was initially scheduled for next month.
In a statement, Maynilad said that it had submitted the updated timetable to the Securities and Exchange Commission and the Philippine Stock Exchange.
The offer period was initially scheduled from July 3 to July 9. Listing date was previously set on July 17.
Maynilad said changing the timeline was “in response to robust potential demand from strategic cornerstone investors.”
“These investors have conveyed strong and sustained interest in participating in the offering, but requested additional time to complete their internal approval processes,” the company added.
Maynilad gave assurance that the “potential participation of these investors is expected to add even more value to Maynilad’s public offering and will be viewed positively by all investors and the markets at large.”
The transaction was approved by the Securities and Exchange Commission earlier this month. It involves the sale of 1.93 billion primary shares and 354.7 million secondary shares at up to P20 each. Proceeds will fund the company’s capital expenditures and other general corporate matters.
The company tapped BPI Capital Corp. as the domestic lead underwriter for the IPO. The Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch are the joint global coordinators and bookrunners.
Maynilad 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.
Last week, the government approved the 10-year extension of Maynilad’s contract, allowing the West Zone concessionaire to operate until January 21, 2047.
“Maynilad views this extension as an affirmation of the company’s fundamentals and long-term prospects and supports the company’s move for an IPO,” the company said.
