MVP awaits big buyers, steady market for Maynilad IPO
Billionaire Manuel V. Pangilinan is waiting for the local stock market to stabilize after seeing some volatility due to the Middle Eastern conflict before proceeding with the P37.41-billion initial public offering (IPO) of his water business.
This, apart from responding to requests from cornerstone investors.
Pangilinan said in an interview last week the tension between Israel and Iran would still “take time” before it finally settles down.
This put pressure on the global markets, including the Philippine Stock Exchange. Traders had offloaded their shares to shield their portfolio.
“Maybe we should just pause … and wait for the significant cornerstone investors,” he said.
“They signified a significant amount of money to be invested. That’s why it was prudent to delay and wait for them,” he added.
Maynilad Water Services Inc. was initially set to make its market debut in July. But the company recently decided to push this later to October.
Maynilad said some of its investors requested more time to complete their bid for the IPO.
The Securities and Exchange Commission approved the exercise earlier this month. Transaction involves selling of 1.93 billion primary shares and 354.7 million secondary shares offered for up to P20 each.
Proceeds will fund the company’s capital expenditures and other general corporate matters.
Maynilad holds a concession from the Metropolitan Waterworks and Sewerage System.
It is required to offer at least 30 percent of its shares to the public on or before January 2027.
The government recently approved the 10-year extension of Maynilad’s contract to operate until Jan. 21, 2047.
