Maynilad Water Services, Inc.’s upcoming initial public offering (IPO) is expected to gain strong momentum after securing high-quality cornerstone investors, including the International Finance Corporation (IFC) and the Asian Development Bank (ADB).
China Bank Capital managing director Juan Paolo Colet said the presence of these reputable institutions is a strong vote of confidence in the company and is likely to attract significant interest from both institutional and retail investors. Their participation is expected to enhance the credibility of the offering and ensure a successful IPO.
“Maynilad has lined up high-quality cornerstone investors, including no less than the International Finance Corporation and Asian Development Bank,” Colet said. “We expect this to boost institutional and retail investor interest in the IPO and ensure a successful deal,” he added.
Aside from the IFC and ADB, Maynilad has secured six more international cornerstone investors: Malaysia Sdn. Bhd., the Foreign, Commonwealth and Development Office (acting through its Mobilising Capital through Listed Products, or MOBILIST), Maven Investment Partners Ltd.-Hong Kong Branch, Maybank Asset Management Singapore Pte. Ltd., Robeco Switzerland Ltd. and QRT Master Fund-Torus Fund SP.Domestic cornerstone investors BDO Capital, BPI Asset Management and Trust Corporation, Metropolitan Bank & Trust Company and Security Banking Corporation-Trust and Asset Management Group also committed to the IPO.
Aside from the recognizable names, COL Financial research head April Lee said the reduction in the IPO price will make the Maynilad offering attractive. “Dividend yields have also become a lot higher and therefore more attractive,” Lee said.
The IFC and ADB have committed to invest in Maynilad’s IPO at P15 per share, which is lower than the P20 maximum offer price set by the company.
Meanwhile, the Philippine Stock Exchange (PSE) said Monday it approved Maynilad’s maiden share offering after the company filed its latest registration statement.
Maynilad will offer for sale 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 PSE on Nov. 7.
Maynilad tapped BPI Capital Corp., the Hongkong and Shanghai Banking Corporation Limited, Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch as joint global coordinators and joint bookrunners for the offer. Domestic underwriters include BPI Capital, Maybank Securite Pte. Ltd., BDO Capital & Investments Corp., First Metro Investments Corp., Security Bank Capital and East West Banking Corp.
