THE Securities and Exchange Commission (SEC) has approved the planned P45.8-billion initial public offering (IPO) of Pangilinan-led water provider Maynilad Water Services, Inc., which is set to list on the Philippine Stock Exchange (PSE) by July 17.
The commission en banc approved Maynilad’s IPO, consisting of 1.93 billion primary shares and 354.70 million secondary shares, the corporate regulator said in an e-mail statement on Monday.
The secondary shares will be sold by the company’s principal shareholder, Maynilad Water Holding Company, Inc.
Maynilad will offer up to 1.66 billion common shares, an overallotment option of up to 249.05 million shares, and a preferential offer of up to 24.9 million shares, all priced at up to P20 per share.
The offer period is scheduled from July 3 to July 9, with listing on the PSE on July 17, according to Maynilad’s latest timeline submitted to the SEC.
The water provider expects to generate up to P37.41 billion in net proceeds if the overallotment option and preferential offer are fully subscribed. Proceeds will be used to finance capital expenditures and other corporate purposes.
The company will not receive proceeds from the sale of secondary shares by Maynilad Water Holding.
Maynilad is required to offer at least 30% of its outstanding capital stock to the public by January 2027, as provided under the terms of its legislative franchise.
The upcoming listing marks the second IPO on the PSE this year, following the P733-million market debut of Cebu-based fuel retailer Top Line Business Development Corp. on April 8.
The PSE expects six IPOs this year.
Maynilad 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 for the offering.
Pangilinan-led conglomerate 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., holds an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave
