MAYNILAD WATER SERVICES, Inc.’s decision to move its initial public offering (IPO) to a date no later than Nov. 7 gives cornerstone investors more time to participate and allows investors additional time to assess valuation and allocations, analysts said.
“Investors will naturally need more time to assess valuation attractiveness and determine their desired allocations,” Jarrod Leighton M. Tin, equity research analyst at DragonFi Securities, Inc., said in a Viber message on Monday.
Luis A. Limlingan, head of sales at Regina Capital Development Corp., said, “Cornerstone investors play a crucial role in establishing a solid foundation for an IPO by offering early backing and confirming the offering’s value.”
He added, “For Maynilad, delaying the listing provides additional time to lock in these key commitments, ensuring support for the IPO. At the same time, broader market conditions, such as economic trends, interest rates, and investor sentiment, can affect the timing and pricing.”
In a disclosure to the Philippine Dealing and Exchange Corp. last Thursday, Maynilad said the target listing date was moved from Oct. 30 to no later than Nov. 7 to accommodate cornerstone investors and allow potential investors to better understand its business model.
The IPO had initially been scheduled for Oct. 30, which itself was already a delay from the company’s July target.
In July, Maynilad Chairman Manuel V. Pangilinan said the company had secured a firm commitment from one of its two planned cornerstone investors.
Mr. Tin noted that cornerstone participation can help set a fair offer price and reassure the market, adding, “A key factor yet to be clarified is the implied dividend yield at the offer price — a critical metric that will likely anchor investor demand, particularly among income-focused buyers.”
He also said, “The participation of cornerstone investors can help establish pricing discipline, as their involvement often signals institutional confidence but also pressure to secure a fair entry point. In the current bearish market environment, pricing the offer toward the lower end of the indicative range would likely improve take-up and support aftermarket performance. That said, prolonged delays could weigh on sentiment.”
“An IPO delay can often pose concerns for investors, signaling uncertainty or last-minute adjustments. Although cornerstone investors can reassure the market about the offering, the postponement might still prompt questions about the company’s preparedness or external market factors. However, if handled efficiently, the delay could ultimately strengthen investor confidence, especially if it leads to more favorable terms or better long-term results for those involved,” Mr. Limlingan said.
Analysts also stressed the importance of clear communication. Mr. Tin said, “Timely communication and transparent pricing rationale will therefore be essential to sustaining investor confidence ahead of the final offering.”
Maynilad’s IPO will be the second this year, following Cebu-based fuel retailer Top Line Business Development Corp.’s P732.6-million offering in April.
Under its legislative franchise, Maynilad is required to offer at least 30% of its total capital stock to the public by January 2027.
The IPO will include up to 1.66 billion common shares, with up to 24.9 million primary shares and 249.05 million shares under an overallotment option, each priced up to P20.
Secondary shares will be offered by Maynilad Water Holding Company, Inc., the company’s principal shareholder, while funds from the primary shares will be used for capital expenditures and general corporate purposes.
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. — Alexandria Grace C. Magno
