MVP: Maynilad close to finalizing IPO

MANILA, Philippines — Maynilad Water Services Inc. is close to finalizing its highly anticipated initial public offering (IPO), though the valuation may still be adjusted next month, company chairman Manuel V. Pangilinan said.

“The initial numbers, they’re all tentative. So, don’t be surprised if they adjust it, but they’re close to making a final determination,” Pangilinan told reporters yesterday.

He said some existing shareholders might still choose to “sell down a bit,” which could affect the final IPO valuation of the water utility firm.

“I think in the next few weeks or by next month, they will announce the range of prices at which the IPO will be offered. So, just watch for that space,” Pangilinan said.

Based on its latest preliminary prospectus, Maynilad plans to raise up to P45.8 billion from the offering of up to 2.29 billion common shares at a maximum price of P20 apiece.

This is 6.5 percent lower than its initially planned P49-billion public offer.

The offer period is scheduled to run from July 3 to 9, with listing on the main board of the Philippine Stock Exchange targeted on July 17.

Maynilad has tapped BPI Capital Corp.,
Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte. and UBS AG-Singapore Branch as joint global coordinators and joint bookrunners.

“We want to launch within the year so that the obligation to offer 30 percent of the shares is over, hopefully in the third quarter and market conditions allow it,” Pangilinan said.

Under its legislative franchise, Maynilad is required to offer at least 30 percent of its outstanding capital stock to the public on or before January 2027.

The company, which provides water services in the west zone of Metro Manila, is jointly owned by Pangilinan-led Metro Pacific Investments Corp., DMCI Holdings of the Consunji Group and Japan’s Marubeni Corp.

MPIC owns about 53 percent of Maynilad, with DMCI and Marubeni holding 25 percent and 20 percent, respectively.