Maynilad Water Services Inc. is looking at an earlier launch for its initial public offering to secure funding for its five-year, P163-billion capital expenditures program.
“We are looking for opportunities to do the IPO earlier if market conditions improve,” said Maynilad chief finance officer Ricardo Delos Reyes, highlighting the company’s readiness for a major capital-raising activity.
The company should list at least 30 percent of its outstanding capital stock on the Philippine Stock Exchange by January 2027.
Maynilad said it could not disclose yet how much it would raise from the IPO. “It will depend on the valuation of the market and the market conditions prevailing during the time of the IPO,” delos Reyes said.
Maynilad said its planned blue bond offering in July 2024 would allow it to gauge investor interest while raising funds for its huge sustainability expansion plan.
Delos Reyes said the market acceptance for bond issuance is good at the moment, citing attractive interest rates.
“We’ve looked for a chance to involve more people to participate in building our water sector’s infrastructure,” he said.
The blue bond offering, a special investment category supporting sustainable projects, aims to raise P12 billion with an oversubscription option for another P3 billion. Maynilad would use the proceeds to water and wastewater infrastructure projects, including reducing non-revenue water (NRW).
“This blue bond offering is one of the initiatives to finance our P163 billion capex program for the next five years,” Delos Reyes said.
Maynilad’s blue bond offering precedes a mandatory IPO requirement stipulated in their franchise renewal agreement. The company should list at least 30 percent of its outstanding capital stock on the Philippine Stock Exchange by January 2027.
The initial blue bond offering will consist of Series A with a 5-year term and indicative yields of 6.719 percent to 7.0169 percent, and Series B with a 10-year term and indicative yields of 7.119 percent to 7.519 percent.
