Maynilad Water Services Inc., the largest private water concessionaire in the Philippines, is set to debut on the Philippine Stock Exchange Friday following a landmark P34.3 billion initial public offering.
Maynilad will brave volatile market as it will list its shares on the main board of the local bourse under the ticker symbol MYNLD.
The company, which operates the water and wastewater services for Metro Manila’s west zone and parts of Cavite, priced its shares at P15 apiece after completing its offer period on Oct. 29.
Maynilad offered up to 1.66 billion primary common shares and a preferential allotment of 24.9 million shares. The IPO also includes an overallotment option of 249 million shares and an upsize option of up to 354.7 million secondary shares.
The company opted to fully exercise the upsize option for the IPO given the robust investor confidence in the company’s long-term growth prospects.
The offer has drawn strong domestic and international investor confidence, with the International Finance Corp. (IFC) and the Asian Development Bank (ADB) serving as lead cornerstone investors. Several domestic and international cornerstone investors have also confirmed their participation in the offer.
“We believe that the decision to exercise the upsize option in full reflects the market’s confidence that Maynilad is a company with strong financial fundamentals and is primed for long-term growth,” said Mayanilad president and chief executive Ramoncito Fernandez earlier.
“We look forward to making our listing day a successful milestone with our shareholders,” he said.
Proceeds from the share sale will be used to fund capital expenditures for water and wastewater infrastructure, improve customer service systems and support general corporate needs, the company said.
Maynilad’s listing marks a significant development for the local market, which has seen limited large-scale IPOs in recent years.
Analysts said the deal could boost investor confidence in infrastructure and utility plays.
Maynilad operates under a 25-year concession agreement with the government. The company serves more than 9.8 million people in Metro Manila and nearby provinces.
