WEST ZONE concessionaire Maynilad Water Services, Inc. said it has secured a firm commitment from one of its two intended cornerstone investors to participate in its planned P45.8-billion initial public offering (IPO).
“One of the cornerstone investors already confirmed approval, while [we are hoping] to secure the other by September,” Maynilad Chairman Manuel V. Pangilinan told reporters on Monday.
Mr. Pangilinan confirmed that the two cornerstone investors are both foreign entities.
Maynilad initially scheduled its IPO listing for July 17 but has postponed it to no later than the end of October, citing potential interest from cornerstone investors.
“Hopefully, we could get back on the saddle by October,” Mr. Pangilinan said.
Maynilad’s IPO consists of 1.93 billion primary shares and 354.7 million secondary shares priced at up to P20 apiece.
The secondary shares will be sold by the water provider’s principal shareholder, Maynilad Water Holding Company, Inc.
The IPO could raise as much as P37.41 billion in net proceeds if both the overallotment option and the preferential offer are fully taken up.
Proceeds are allocated for capital expenditures and general corporate purposes. Maynilad will not receive proceeds from the sale of secondary shares.
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.
Under the terms of its legislative franchise, Maynilad is required to offer at least 30% of its outstanding capital stock to the public by January 2027.
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., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera
