The firm, backed by the Consunji family’s DMCI, Manuel V. Pangilinan-led Metro Pacific Investments Corp., and Japan’s Marubeni Group, approved plans to sell up to 2.46 billion shares at P20 each, a regulatory filing seen by InsiderPH showed.
This involves the base offer of 1.81 billion shares, an overallotment option of 266.3 million shares (typically for post-IPO price stabilization), and a 379.29 million upsize option in case of excess demand.
Deal expert’s view
“This is the kind of IPO that can potentially do well amidst current market conditions,” Juan Paolo Colet, managing director at top investment bank China Bank Capital, told InsiderPH in a text message.
“I think the offer shares can be fully taken up since this will be marketed to both offshore and domestic investors. Having a strong syndicate of foreign and local banks to support the deal will be very important to its success,” he added.
Maynilad a defensive, dividend play
“Maynilad will be regarded as a defensive stock as well as a dividend play, so it’s something many institutional and retail investors would consider buying,” Colet said.
“It also helps the IPO story that they got a huge earnings boost last year mainly due to tariff adjustments,” he added.
Big picture
If it achieves that size and price, Maynilad’s IPO would be worth P49.15 billion, eclipsing the P48 billion offer of Monde Nissin.
Maynilad is required to list its shares under the terms of its franchise no later than January 2027.
It serves about 10 million customers in Metro Manila and nearby provinces, covering nearly 10 percent of the country’s population.
Earnings growth, dividends
Investors will see the final dividend policy once Maynilad files its formal IPO papers.
During its March 14 board meeting, Maynilad approved an annual dividend payout of at least 50 percent of the previous year’s net income after tax.
In 2024, it grew revenues by 23 percent to P33.5 billion, thanks to a 3 percent increase in billed volumes and a 20 percent tariff adjustment in early January 2024.
Core net income rose 40 percent to P12.8 billion, which was supported by lower operating expenses.
Miguel R. Camus has been a reporter covering various domestic business topics since 2009.
