West Zone Maynilad Water Services Inc. announced plans to raise up to P43.78 billion in an initial public offering (IPO) at the Philippine Stock Exchange (PSE). Its board of directors approved the sale of 1.81 billion common shares with provisions for an over-allotment of 266.3 million and an upsize option of 379.28 million. The shares will be priced at P20 each, with a par value of P1 a share.
Ramoncito Fernandez, Maynilad CEO, said this year is the ideal year for the company’s market debut. According to him, postponing the offering until next year could complicate the process as Maynilad’s franchise requires the company to offer up to 30 percent of its shares to the PSE by January 2027. Delaying the IPO could lead to unfavorable market conditions, Fernandez added, reiterating this year as the “sweet spot” for the offering.
The proposed Maynilad IPO is supported by major financial institutions, including Hong Kong Shanghai Banking Corp. (HSBC), Morgan Stanley, UBS, and the Bank of the Philippine Islands (BPI).
In addition to the plan, Maynilad announced successful efforts in providing uninterrupted water supply even during the hot months of the year, marking the second year in a series without unplanned service interruptions. This follows the company’s adoption of various mitigation measures over the past three years, including the construction of a 150-million-liters-per-day Poblacion plant in Muntinlupa, the reactivation of deep wells, and the introduction of modular treatment plants.
The ongoing program to reduce non-revenue water has been a significant part of its strategy, contributing to improved service reliability and efficiency.
