The upcoming initial public offering (IPO) of Maynilad Water Services Inc. is expected to inject fresh optimism into the local capital markets, according to Security Bank Capital (SB Capital).
Virgilio Chua, president of SB Capital, said the highly anticipated IPO “will actually bring renewed interest to the market,” particularly as the Philippine Stock Exchange Index (PSEi) continues to hover at the 6,000 level.
The investment house anticipates the PSEi will reach the 6,700 level by year-end, partially driven by the Maynilad listing.
Chua noted that preferred shares—instruments considered quasi-debt and quasi-equity—are currently providing the main support to the equity capital market. Due to a dearth of IPOs this year, he said companies have turned to perpetual preferred shares, which are expected to reach P67 billion in issuance volume by year-end.
SB Capital, the investment banking arm of Security Bank, also hopes that the high quality of foreign and local cornerstone investors secured by Maynilad will boost overall investor confidence.
Maynilad has secured 12 cornerstone investors, including two multilateral lending institutions, six foreign investors, and four local investors.
The cornerstone investors include the International Finance Corp., Asian Development Bank, Malaysia Sdn. Bhd., Foreign, Commonwealth and Development Office (acting through its MobilisingCapital through Listed Products (MOBILIST)), Maven Investment Partners Ltd.-Hong Kong Branch, Maybank Asset Management Singapore Pte. Ltd., Robeco Switzerland Ltd., QRT Master Fund-Torus Fund SP, BDO Capital, BPI Asset Management and Trust Corporation, Metropolitan Bank & Trust Company, and Security Banking Corporation-Trust and Asset Management Group.
SB Capital plans to introduce a new name to the bond market in 2026, starting with a P2 billion bond offering for property developer Haus Talk Inc. The firm is also seeking more financing deals in the renewable energy space, having arranged several such deals this year.
SB Capital is celebrating its 30th year in business. Since 1995, the company has helped arrange P1 trillion worth of projects across various sectors, including energy, infrastructure, manufacturing, mining, real estate, healthcare and financial services.
