Maynilad Water Services Inc. said it plans to use the proceeds of its initial public offer (IPO) to partially fund its P58.58- billion capital expenditure (capex) for this year and next year.
The prospectus of the water distribution company, a member of the well-diversified Pangilinan group, filed with the Securities and Exchange Commission (SEC) on Monday showed that it is looking to offer to the public an initial 1.81 billion primary shares, and 266.31 million primary shares to cover the over-allotment option, at an offer price of up to P20 per share.
This will raise for the company P41.56 billion in proceeds.
The company has also allotted another 379.29 million for an “upsize option,” which could potentially raise the total proceeds to P49.14 billion.
BPI Capital Corp., HongKong and Shanghai Banking Corp. Ltd., Morgan Stanley Asia (Singapore) Pte. and UBS AG, Singapore branch will serve as joint global coordinator and joint bookrunners.
Maynilad said its capex program will cover water, wastewater and customer service and information system projects.
The program includes the acquisition of lots preparatory to the construction of a 300 million liters per day (MLD) water treatment plant in Teresa, Rizal, as well as install a 46-kilometer conveyance to coincide with the completion of the Metropolitan Waterworks and Sewerage System’s New Centennial Water Source-Kaliwa Dam.
