6 days ago
Maynilad secures SEC approval for IPO this July 2025
West zone concessionaire Maynilad Water Services Inc. has secured the approval of the Securities and Exchange Commission (SEC) to proceed with its initial public offering (IPO) this July, as the firm is required to offer at least 30% of its outstanding capital stock as part of its government-issued franchise.
Based on its latest timeline submitted to the SEC, Maynilad plans the offer period from July 3 to July 9, with the shares set to be listed on the main board of the Philippine Stock Exchange on July 17.
The corporate regulator's En Banc resolved to render effective Maynilad's registration statement covering 1,934 primary shares and 354,704,200 secondary shares on May 30, subject to compliance with certain requirements.
Maynilad is set to offer 1,680,317,400 common shares at up to P20 apiece, with an overallotment option of up to 249,047,600 shares and a preferential offer of up to 29,904,800 shares.
The company is set to net up to P37.41 billion, should the overallotment option and preferential offer be fully subscribed. Proceeds are set to bankroll the company's capital expenditures, and corporate general purposes.
The company earlier planned to raise P49 billion from its IPO by offering 2.46 billion common shares at a maximum price of P20 each.
'The initial numbers, they're all tentative, so don't be surprised if they adjust it, but they're close to make a final determination — the number of shares, how many are primary, how many are secondary,' Maynilad chairman Manuel Pangilinan told reporters on the sidelines of an event last week.
'Some of the shareholders might decide to sell down a bit, and of course, the pricing also. I think in the next few weeks or by next month, within a range, they will announce the range of prices at which the IPO will be offered. So just watch out for that space,' he added.
The company tapped BPI Capital Corp., The Hongkong and Shanghai Banking Corporation Limited (HSBC), Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch as joint global coordinators and joint bookrunners for the offer.
Under its franchise signed into law by former President Rodrigo Duterte in December 2021, Maynilad is mandated to offer at least 30% of its outstanding capital stock within five years.
Maynilad currently serves customers in the west zone, which covers the cities of Caloocan, Las Piñas, Makati, Malabon Manila, Muntinlupa, Navotas, Parañaque, Pasay, Quezon, Valenzuela.
It also services certain areas in Cavite such as the cities of Bacoor, Cavite, and Imus; and the towns of Kawit, Noveleta, and Rosario. —KG, GMA Integrated News
