The utility is offering 1.93 billion primary shares, which include a firm offer, an over-allotment option, and a preferential allocation of 24.9 million shares reserved for major shareholder First Pacific Co. Ltd. to allow it to maintain its stake under Hong Kong rules.
A separate 354.7 million secondary share tranche could raise P7.1 billion for Maynilad Water Holding Co. Inc. (MWHCI), the selling shareholder. Up to 30 percent of the company's shares will be sold to the public.
The prospective ceiling price is listed at P20 each.
This will value Maynilad, which serves Metro Manila's west zone, at close to P151 billion or roughly 37 percent larger than east zone concessionaire Manila Water Services, controlled by tycoon Enrique Razon Jr.
New timetable
The company initially targeted a July debut but moved the timetable to October as it finalized regulatory approvals and deal structure.
Pricing is set for Oct. 13, with the final offer price to be announced the next day ahead of an offer period running Oct. 16 to 22.
The new timetable was first reported by Manila Standard newspaper.
Maynilad eyes expansion
If fully exercised, the primary tranche will raise P38.7 billion in capital.
Proceeds from the dela will be used for expansion and infrastructure upgrades.
Maynilad is 94 percent-controlled by Maynilad Water Holding Co. Inc., whose shareholders are Manuel V. Pangilinan-led Metro Pacific Investments Corp. (51.3 percent), Consunji-led DMCI Holdings (27.2 percent) and Japan’s Marubeni (21.5 percent).
Metro Pacific is a unit of First Pacific.
Major international, domestic banks are backing the deal
Maynilad is required to list its shares under the terms of its franchise no later than January 2027.
The IPO is being led by Morgan Stanley Asia (Singapore) Pte., HSBC, UBS AG Singapore Branch, and BPI Capital Corp. as joint global coordinators and bookrunners, with Maybank Securities Pte. Ltd. serving as co-manager.
Maynilad firms up dividend policy
Based on its latest IPO prospectus, Maynilad plans to pay annual dividends equal to the higher of 50 percent of its previous year’s net income or 40 percent of adjusted net income (net income plus depreciation and amortization), capped at 100 percent of net income.
This policy matches the company’s historical payout levels over the past three years.
—Edited by Miguel R. Camus
