MANILA, Philippines — The Securities and Exchange Commission (SEC) has greenlit the initial public offering (IPO) of Maynilad Water Services Inc., which is now scheduled for next month.
On May 30, the commission en banc decided to make operative the registration statement submitted by Maynilad for 1.93 billion primary shares and 354.7 million secondary shares, provided that the firm meets some outstanding conditions.
Maynilad intends to present as much as 1.66 billion common shares to the general public for up to PHP 20 each share, including an over-allotment provision of up to 249.05 million shares and a preferred offering of up to 24.9 million shares.
The company’s shareholder, Maynilad Water Holding Co. Inc., will offload additional shares as part of this offering.
The offering still accounts for at least 30 percent of Maynilad’s total outstanding capital stock, which aligns with the requirements set forth in its legislative franchise.
Based on the SEC statement, Maynilad might earn as much as P37.41 billion from the initial public offering, provided that both the overallotment option and the preferential offer achieve full subscription.
The company will not get money from the selling of additional shares by Maynilad Water Holdings by May.
The funds will be utilized to support the company’s capital investments and for general corporate needs.
According to the most recent schedule provided by the corporation to the SEC, Maynilad’s offering phase will take place from July 3 to 9, with plans to list the shares on the primary market of the Philippine Stock Exchange set for July 17.
BPI Capital Corporation, The Hong Kong and Shanghai Banking Corporation Limited, Morgan Stanley Asia (Singapore) Pte., and UBS AG Singapore Branch were appointed as joint global coordinators and joint bookrunners for the offering.
Maynilad previously mentioned that although a formal demand evaluation hasn't occurred yet, early input from investors during conferences has been positive.
"We therefore continue to be confident as we move forward into the subsequent stage of the IPO process," the statement read.
Maynilad serves as the government’s contractor for water service provision in the West Zone of Metro Manila.
As per Maynilad’s legislative franchise, the company is required to go public by January 2027 and should provide at least 30 percent of its outstanding capital shares within five years after receiving the franchise.
The firm is co-owned by Metro Pacific Investments Corporation with 53%, DMCI Holdings from the Consunji family holding 25%, and Marubeni Corp. from Japan owning 20%.