WEST ZONE water concessionaire Maynilad Water Services, Inc. plans to file its application for an initial public offering (IPO) by the first quarter of 2025, with a listing date in either April or July, its president said.
“Our plan is to be push-button ready. We are now pushing our team to apply already by the first quarter of next year,” Maynilad President and Chief Executive Officer Ramoncito S. Fernandez told reporters last week.
“Our target is to be prepared for two possible dates, before the elections in April, or after the elections in July,” he added.
Mr. Fernandez said Maynilad has yet to determine the valuation of its IPO but has already tapped three companies as financial advisors.
“We have already appointed three financial advisors: HSBC, Morgan Stanley, and UBS,” he said.
“This is a major listing that will not be funded only by local investors. We really need a portion of foreign investors,” he added.
Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the west zone service area of Metro Manila and Cavite province.
The law also provides that Maynilad should offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.
The Philippine Stock Exchange previously said that Maynilad is one of the six expected IPOs next year.
Meanwhile, Mr. Fernandez said Japanese conglomerate Marubeni Corp. wants to retain its stake in Maynilad after the water provider’s IPO.
“Marubeni wants to stay. In fact, they are very sensitive about being diluted. They are the most sensitive, actually, about being diluted. No talks yet on whether the dilution will be equal. But ideally, it should be equal,” he said.
“They don’t want to dilute their board membership. That is what they are most critical about. Of course, they want to consolidate their financials,” he added.
Marubeni has a 20% stake in Maynilad after Pangilinan-led Metro Pacific Investment Corp. (MPIC) and Consunji-led DMCI Holdings, Inc. sealed an agreement in 2013. MPIC has a 53% stake in Maynilad, while DMCI has 25%. Other investors hold the remaining 2%.
Metro Pacific Investments Corp., which has a majority stake in Maynilad, is one of three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave