WEST ZONE water concessionaire Maynilad Water Services, Inc. has appointed five additional banks to its underwriting syndicate for its planned P45.8-billion initial public offering (IPO) scheduled next month.
In its preliminary prospectus dated Oct. 3, Maynilad said BDO Capital & Investment Corp., First Metro Investment Corp., and Security Bank Capital Corp. have been appointed as domestic co-lead underwriters, while EastWest Banking Corp. will serve as domestic participating underwriter.
Maybank Securities Pte. Ltd. has been appointed as joint lead underwriter to assist the international underwriters in the institutional offering on a best-efforts basis.
The five banks form part of a nine-member underwriting syndicate that includes BPI Capital Corp. as the domestic lead underwriter.
Foreign banks such as The Hongkong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch will act as joint global coordinators and joint bookrunners.
Maynilad’s IPO, which could be the country’s largest listing this year, has received strong interest from institutional investors including the United Kingdom’s Mobilist, the International Finance Corp. (IFC), and the Asian Development Bank (ADB).
IFC and ADB are considering investments of $100 million and $145 million, respectively.
The cornerstone investment agreements with IFC, ADB, and Mobilist are subject to final execution and the final determination of the offer price, which must not exceed P15 per share.
Other institutional investors expressing interest include Robeco Switzerland Ltd., offering up to $20 million, as well as abrdn Malaysia Sdn. Bhd., Maven Investment Partners Ltd. – Hong Kong Branch, Maybank Asset Management Singapore Pte. Ltd., and QRT Master Fund – Torus Fund SP.
The IPO will include up to 1.66 billion common shares, comprising 24.9 million primary shares and 249.05 million overallotment option shares, priced at up to P20 apiece.
The offer period is scheduled to run from Oct. 23 to 29, with listing on the Philippine Stock Exchange targeted for Nov. 7.
Proceeds from the sale of primary shares will be allocated for capital expenditures and general corporate purposes.
In an advisory on Monday, the Philippine Exchange, Inc. said it had approved Maynilad’s IPO.
Maynilad is the integrated primary provider of sustainable water and wastewater services for the West Zone, covering 11 cities in Metro Manila, three of which have partial coverage, as well as portions of Cavite province.
Metro Pacific Investments Corp., which holds a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc. — Sheldeen Joy Talavera
