Maynilad Water Services Inc. will need up to P400 billion until 2037 to finance the company’s expansion and operation.
Ramoncito Fernandez, Maynilad president and chief executive officer, said the company intends to fund the capital expenditure (capex) and operating expenditure (opex) through combination of debt and listing of shares.
Fernandez said the company undertakes a business plan every five years.
He said the current business plan, which started in 2022 when the 25-year franchise was renewed, requires P220 billion until 2027.
Fernandez said easily, the next 10 years ending 2032 requires P400 billion.
Maynilad targets the IPO in 2025 or the latest in 2026.
“Our franchise requires us to float 30 percent in five years which ends in January 2027. The plan is to do the IPO definitely before the 2027 deadline,” Fernandez said.
He added Maynilad is evaluating the financial advisors who will determine the exact amount needed to be raised.
But he noted Maynilad has yet to maximize its debt.
Fernandez said going public by 2027 comes just at the right time “ because we cannot finance P220 billion and another P220 billion just by debt.”
