Maynilad Water Services Inc., the West Zone water concessionaire, is in talks with banks for its planned initial public offering (IPO) on the Philippine Stock Exchange, as part of its mandatory listing requirement by 2027. Metro Pacific Investments Corp. (MPIC) chairman Manuel V. Pangilinan confirmed the discussions at a Management Association of the Philippines event, signaling that Maynilad’s IPO could happen as early as this year or by 2026, with preparations already underway.
Maynilad president and CEO, Ramoncito S. Fernandez, announced in November that financial advisors, including global institutions HSBC, Morgan Stanley, and UBS, have been appointed to assist in the IPO process. While specific valuations have yet to be determined, Fernandez revealed that the company is targeting a listing date this year, either before or after the national elections. He said that up to 30 percent of the company’s shares could be offered to investors, with a portion aimed at attracting foreign capital, a key factor for the listing’s success.
The upcoming IPO is expected to be a significant event in the Philippine stock market, with the potential to raise substantial funds and widen investor participation in a major utility firm. However, there are concerns about shareholder dilution, with MPIC holding 52.8 percent of Maynilad, the Consunji group owning 25 percent, and Japan’s Marubeni Corp. controlling 20 percent.
In the meantime, Pangilinan also highlighted that Metro Pacific Tollways Corp. (MPTC), another MPIC subsidiary, is focused on raising between ₱30 billion and ₱50 billion through the private placement of new shares. The tollways operator is prioritizing this fundraising effort over a potential merger with San Miguel Corp.’s tollway business, underlining the significance of securing capital for its operations and future growth.
Both moves come as part of MPIC’s broader strategy to strengthen its financial position and expand its infrastructure and utility assets in the Philippines. Investors will closely watch how these developments unfold, with the potential for major market shifts as Maynilad’s IPO and MPTC’s fundraising efforts move forward.
