Maynilad Water Services Inc. will reduce its maximum offer price from P20 to P15 per share, lowering the expected proceeds from P45.8 billion to P34.33 billion.
Maynilad said in a prospectus the company secured two cornerstone investors willing to invest in the company’s IPO at that price.
Multilateral lending agencies International Finance Corp. has committed to invest $100 million, while the Asian Development Bank (ADB) expressed interest in acquiring $145 million worth of Maynilad shares.
Maynilad Water Services Inc. will reduce its maximum offer price from P20 to P15 per share, lowering the expected proceeds from P45.8 billion to P34.33 billion.
Multilateral lending agency International Finance Corp. committed to invest $100 million, while the Asian Development Bank (ADB) expressed interest in acquiring $145 million worth of Maynilad shares.
“The progress is promising, and we will file with final prospectus by this Friday,” Maynilad president and chief executive Ramoncito Fernandez said.
Fernandez, while acknowledging that the stock market is on a downtrend, said the company is poised to proceed with the much-anticipated initial public offering (IPO).
“The market is bad, but we are putting in a very successful and credible story,” Fernandez said.
Fernandez said the company would conduct a roadshow next week to lure more investors.
Maynilad will offer the public up to 1,660,317,400 common shares, with an overallotment option for another 249,047,600 shares and a preferential offer of up to 24,904,800 shares.
The offer will run from Oct. 23 to 29, with the shares expected to be listed on the main board of the Philippine Stock Exchange (PSE) on Nov. 7.
Meanwhile, the Securities and Exchange Commission (SEC) said it granted Maynilad the first Philippine Green Equity label.
The SEC said Maynilad sufficiently established and demonstrated its compliance with the requirements under the Guidelines on Philippine Green Equity, subject to its continuing compliance with the guidelines.
The newly issued guidelines allow publicly listed companies and companies preparing to go public that generate a significant portion of their revenues from, and direct the majority of their investments toward, green activities, to distinguish themselves from other issuers through the use of the label.
Based on the SEC’s assessment, Maynilad derived 100 percent of its revenues from green activities such as water supply, wastewater treatment, sanitation services, and installation of new water service connections, in line with the minimum 50 percent requirement of the guidelines.
The report also indicated that 95 percent of Maynilad’s capital expenditure and 87 percent of its operating expenses were largely aligned with green activities, complying with the minimum of more than 50 percent of a company’s investments that must be channeled to such activities.
