Today I Learned: After Delays, Maynilad is Finally Set to Go Public With P37-Billion IPO
Local utility concessionaire Maynilad Water Holding Co. is gearing up for its planned initial public offering in the Philippine Stock Exchange by submitting a preliminary prospectus for potential investors in what could be the country’s biggest listing in the past year.
In basic terms, the document submitted has the distributor’s information on its business and financial accounts essential to bring potential investors up to speed with the company’s current direction.
“We are proud to reach this point in Maynilad’s story,” said Maynilad President and CEO Ramoncito Fernandez said in a statement commenting on the submission. “Our journey has always been guided by a clear mission—to deliver safe, sustainable, and reliable water and wastewater services to our customers.”
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The executive added that the development was a step forward for broader public participation while keeping everything above board and abiding by all regulatory processes.
What we know so far from Maynilad’s IPO plans
Maynilad has tapped BPI Capital Corp. Hongkong and Shanghai Banking Corp. Limited (HSBC), Morgan Stanley Asia and UBS AG as joint global coordinators and bookrunners for the IPO, which is likely to be worth more than $500 million (nearly P30 billion).
The company initially eyed a July entry into the local stock market but delays pushed the listing to October, but is now slated no later than November 7, based on disclosures found on its official website. A particular disclosure to the Philippine Dealing and Exchange Corp. showed that Maynilad sought the postponement delay to allow potential investors to get a better grasp of its business model and to accommodate cornerstone investors.
Maynilad Chairman Manny Pangilinan said in July that the concessionaire had bagged a commitment from one of its two planned cornerstone investors.
The Securities and Exchange Commission gave the go-signal for the company’s IPO in June, which is expected to allow the distributor to raise upwards of P37 billion this year.
It noted that proceeds from Maynilad’s IPO will be used to fund Maynilad’s capital expenditures and general corporate uses.
Under Philippine law, Maynilad’s legislative franchise is mandated to go public with at least 30 percent of its outstanding capital stock by the start of 2027. It also has to offer at least 30 percent of its total capital stock by that time period.
Maynilad services more than 10 million Filipinos in Metro Manila mainly in the West Zone, among other jurisdictions, and is trying to ramp up funding through public offerings due to higher demand and pricier operating costs.
The company's entry will involve up to 1.66 billion in common shares, with as much as 24.9 million in primary shares and 249.05 million under an overallotment option at P20 each.
Maynilad's IPO is only the second this year after Cebu-based fuel retailer Top Line Business Development Corp.’s P732.6 million offering in April.
