Maynilad Water Services, Inc., the west zone concessionaire, is set to list its shares on the Philippine Stock Exchange (PSE) by next year, according to Maynilad president and CEO, Ramoncito S. Fernandez.
In a recent briefing, Fernandez confirmed that Maynilad has already appointed HSBC, Morgan Stanley, and UBS as its financial advisors for the upcoming initial public offering (IPO). While the company is still in the early stages of the listing process, Fernandez said that it is too early to talk about the valuation, which will play a key role in determining the funds raised through the offering.
The company is targeting two possible listing windows before or after the May 2025 national elections: either in April or July. Fernandez said Maynilad aims to be push button ready by the first quarter of next year.
“We are poised to list next year. Our target is to be prepared for two possible dates—before the elections, in April, or after the elections in July,” Fernandez said, adding that the team is pushing forward with the preparations.
A key factor in the listing process is the portion of shares allocated for foreign investors. According to Fernandez, up to 30 percent of the company’s outstanding shares may be sold to foreign investors, though the company is open to a larger allocation. However, discussions are ongoing about the potential dilution of shares for current shareholders, including Metro Pacific Investments Corp. (MPIC), which holds a 52.8 percent stake in Maynilad, the Consunji group with 25 percent, and Japan’s Marubeni Corp. which controls 20 percent.
While Marubeni remains a strategic partner and is involved in the company’s contract review with the government, Fernandez noted that they are particularly sensitive about any dilution of their shares. He emphasized that the Japanese conglomerate is most concerned about its board membership and financial consolidation.
Maynilad, which is committed to providing water and wastewater services in the West Zone until 2037, has committed to spending approximately P163 billion from 2023 to 2027 on infrastructure projects as part of its long-term business plan.
The IPO is expected to be one of the largest in recent years and will not only tap local investors but also target international capital. However, much depends on the outcome of the ongoing valuation process and the final decision on share allocation.
