Maynilad in Discussions with 2 Investors for P37.4 Billion IPO

Maynilad Water Services Inc. is in talks with two potential investors for its planned P37.4-billion initial public offering (IPO), a top executive said.

Maynilad chairman Manuel Pangilinan said in a recent interview the investors had 'signified a significant amount to be invested,' prompting the company to delay the IPO from its initial target of July.

He did not provide additional information about the potential investors, who have requested more time to complete internal approvals.

Pangilinan said the tensions in the Middle East also factored into Maynilad’s decision to move the IPO no later than October this year.

Maynilad could set a firmer price range for the IPO once it finalizes a deal with these cornerstone investors, Pangilinan said.

The Securities and Exchange Commission (SEC) approved Maynilad’s maiden share offering earlier this month.

Under the plan, Maynilad will sell up to 1.66 billion common shares priced at P20 apiece, with an overallotment option for another 249 million shares and a preferential offer of up to 24.904 million shares.

The company expects the listing to occur on the main board of the Philippine Stock Exchange (PSE) under the trading symbol 'MYNLD.'

Proceeds from the IPO will fund Maynilad’s capital expenditures and for general corporate purposes.

Under its concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS), Maynilad is required to offer at least 30 percent of its shares to the public on or before January 2027.

Maynilad tapped BPI Capital Corp., Hongkong and Shanghai Banking Corporation Limited, Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch as joint global coordinators and joint bookrunners for the offer.

The company, which provides water services in the west zone of Metro Manila, is owned by Metro Pacific Investments Corp., DMCI Holdings of the Consunji Group and Japan’s Marubeni Corp.

Earlier this month, Maynilad secured approval for a 10-year extension of its revised concession agreement. The Economy and Development Council (EDC) approved the MWSS’s request to extend the concession to Jan. 21, 2047.

According to the source: Manila Standard.