SEC OKs Maynilad's P37-Billion IPO
The Securities and Exchange Commission (SEC) has greenlit Maynilad’s initial public offering (IPO) which will allow the concessionaire to raise upwards of P37 billion this year.
Sitting as the commission en banc, the SEC approved the IPO that involves Maynilad Water Holding Co. selling 1.93 billion primary shares, 354.70 secondary shares, after it found Maynilad to have complied with requirements.
The water concessionaire will provide up to 1.66 billion in common shares priced up to P20 each, with an over allotment option of up to 249.05 million shares and a preferential offer of up to 24.90 million shares.
In a statement, the SEC said proceeds from the IPO will be used to fund Maynilad’s capital expenditures and for general corporate uses.
“The offer period will run from July 3 to 9, with the shares expected to be listed on the main board of the Philippine Stock Exchange on July 17, according to the latest timeline submitted to the SEC.”
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How We Got To Maynilad's IPO Approval
The water concessionaire had targeted an offer period from June 25 to July 2 and a listing date on July 10.
Maynilad Chairman Manny Pangilinan earlier said the company would push through with its market debut this year as he cited the need to go public by the early part of 2027.
The chairman had previously said Maynilad would pursue its planned IPO even amid worries concerning the reciprocal tariffs imposed by the United States under Donald Trump.
The Philippine Stock Exchange has said it is expecting at least six IPOS this year, with one of them getting approved in April, namely Cebu fuel retailer Top Line Business Development Corp.'s P732.62 million market debut.
The country's biggest IPO so far was Monde Nissin Corp.'s P48.6 billion market debut in June 2021.
The SEC last year approved Maynilad's proposal to issue blue bonds or monetary instruments to raise funds for marine-based sustainability projects., which was the first blue bond public offering in the country.
Under the law, Maynilad’s legislative franchise requires it to go public with at least 30 percent of its outstanding capital stock by the start of 2027.
The water provider serves more than 10 million Filipinos in Metro Manila primarily in the East Zone, among other jurisdictions, and is trying to boost its funding through public offerings due to higher demant and pricier operating costs.
Maynilad tapped BPI Capital Corp. Hongkong and Shanghai Banking Corp. Limited (HSBC), Morgan Stanley Asia and UBS AG as joint global coordinaters and bookrunners for the IPO.
