Maynilad Water Services Inc.’s market debut came with a splash and a safety net. UBS AG Singapore Branch, acting as the stabilization agent for the utility’s initial public offering, snapped up a hefty 144.3 million Maynilad shares during the stabilization window after the stock slipped below its P15 IPO price.
The move, disclosed by Maynilad, was triggered as shares softened immediately after their November 7 listing on the Philippine Stock Exchange. UBS AG stepped in aggressively on day one, spending P1.25 billion to prop up the stock. By the end of the stabilization period, total support reached P2.16 billion, reflecting a proactive defense to keep the newly listed company’s valuation intact.
The stabilization spend amounts to roughly 6.2 percent of Maynilad’s P34.3-billion IPO proceeds. Maynilad intended to use IPO funds for capital expenditures and general corporate purposes, including pipeline upgrades and service expansion across its concession areas.
Under the price stabilization agreement, all shares bought by UBS AG will be returned to Maynilad, a standard mechanism that allows issuers to counter volatility without permanently increasing outstanding shares.
The intervention was part of UBS AG’s commitment to ensure the success of one of the Philippines’ largest public offerings this year. For Maynilad, the maneuver helps maintain investor confidence as it embarks on an ambitious investment program in a sector where stability — both financial and physical — is paramount.
With the stabilization window now closed, all eyes turn to whether Maynilad’s fundamentals can carry its share price without assistance. The next few weeks will test how well the market can hold water.
