Maynilad Water Services Inc. is looking to raise P41.6 billion through an initial public offering (IPO) this year to take advantage of a “sweet spot” for the launch, or the right environment that would give it the best price, Chief Executive Officer (CEO) Ramoncito Fernandez said.
A member of the well-diversified Pangilinan group, Maynilad stated its plan for an IPO in a disclosure at the Philippine Dealing and Exchange Corp. (PDEx) Friday.
It said its board of directors approved the plan to sell 2.08 billion shares in the company, divided into an initial 1.81 billion and a further 266.91 million common shares, at an offer price of up to P20 per share, subject to the submission of requirements and regulatory approval.
Fernandez, in an earnings report announced by Maynilad’s parent company, Metro Pacific Investments Corp. (MPIC), earlier last week said they were still firming up the plan to hold the IPO sometime in the second or third quarter of this year.
“The franchise of Maynilad calls for its shares offering of up to 30 percent to the Philippine Stock Exchange (PSE) on or before January 2027.
Fernandez said, “That’s where we are today.
And the earlier, the better. Because if you understand our predicament, if we push for it next year, we might be running out of options. So it’s a sweet spot this year.”
On Sunday, Fernandez repeated the term, saying that it refers to the “right valuation with optimal investor mix and all factors considered — macroeconomic, global and local political environment.”
“A successful IPO is the main objective,” he said.
Maynilad has already tapped Hong Kong Shanghai Banking Corp. (HSBC), Morgan Stanley, UBS, and Bank of the Philippine Islands to help prepare the IPO plans.
Maynilad posted a net income of P12.8 billion in 2024, a 40 percent increase from P9.14 billion in 2023. Its revenues hit P33.5 billion or 23 percent from 27.24 billion, owing to a 20 percent tariff hike it imposed early in January 2024.
The company boasted 1.5 million service connections at the end of June 2024.
Maynilad, meanwhile, expects to deliver an uninterrupted water supply to its concession area this summer for the second year in a row after the successful implementation of mitigating activities in the past three years.
“Last year amid El Nino, we didn’t have any unplanned interruption,” Fernandez said. “We have built a 150 million liters per day Poblacion plant in Muntinlupa.”
Two deep wells and modular treatment plants are on standby for use during the summer, he added.
