By Revin Mikhael D. Ochave, Reporter
PANGILINAN-LED water concessionaire Maynilad Water Services, Inc. has reduced the size of its planned initial public offering (IPO), with the listing now scheduled for July 17.
Based on its latest prospectus draft dated May 14, Maynilad’s IPO is now expected to raise up to P45.8 billion, slightly lower than the up to P49 billion indicated in its initial prospectus.
The revised IPO comprises up to 2.29 billion common shares, lower than the earlier maximum of 2.46 billion shares. The indicative maximum price remains at P20 per share.
This offering is also smaller than the country’s largest IPO to date — the P48.6-billion market debut of food and beverage producer Monde Nissin Corp. in June 2021.
The updated structure includes a primary offer of up to 1.66 billion common shares, an overallotment option of up to 249.05 million primary common shares, an upsize option of up to 354.7 million secondary common shares, and 24.9 million primary common shares to be offered to Hong Kong-based investment holding firm First Pacific Co. Ltd., which is also led by Manuel V. Pangilinan.
This compares with the previous allocation of up to 1.78 billion primary common shares, an overallotment option of up to 266.31 million primary common shares, an upsize option of up to 379.29 million secondary common shares, and 36.31 million primary common shares for First Pacific.
The latest timetable shows that the listing date has been moved to July 17 from the earlier target of July 10.
The notice of final offer price to regulators is scheduled for July 1, while the offer period will run from July 3 to July 9.
Maynilad is required to offer at least 30% of its outstanding capital stock to the public by January 2027 under the terms of its legislative franchise.
Net proceeds from the IPO will be used to fund Maynilad’s capital expenditure requirements for its water, wastewater, and customer service and information system projects through 2026. A portion of the proceeds will also be allocated for general corporate purposes.
Maynilad’s market debut is one of six IPOs anticipated this year. However, the Philippine Stock Exchange has so far recorded only one: the April offering of Cebu-based fuel retailer Top Line Business Development Corp.
Mr. Pangilinan, chairman of Maynilad, previously said the company would proceed with its IPO despite external uncertainties, including tariff risks under the Trump administration.
“We have to go public by the early part of 2027. We just want to probably finish and comply with the franchise law of Maynilad. I’d like to encourage them to proceed,” he said.
Maynilad appointed BPI Capital Corp., HSBC, Morgan Stanley, and UBS as joint global coordinators and joint bookrunners for the offering. BPI Capital Corp. will also serve as the domestic lead underwriter.
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine subsidiaries of First Pacific Co. Ltd., alongside Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls.
