Maynilad Water Services Inc. is preparing for what could be the largest initial public offering (IPO) in Philippine history, with its stock market debut potentially reaching P49 billion this year.
In a regulatory filing on Friday, the company announced that its board of directors had approved the sale of up to 2.46 billion common shares at a maximum price of P20 each.
The offering will include a base offer of 1.81 billion shares, with an overallotment option of 266.31 million shares if demand is high. Maynilad may also increase the offer by an additional 379.3 million shares.
If priced at the maximum amount, the IPO would surpass the P48-billion record set by Monde Nissin Corp. in 2021.
IPO Timeline and Market Conditions
Maynilad President and CEO Ramoncito Fernandez confirmed last week that the company is preparing to launch the IPO within 2025, depending on macroeconomic and geopolitical conditions.
Maynilad, which operates under a concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS), is jointly owned by DMCI Holdings Inc., Metro Pacific Investments Corp., and Japanese conglomerate Marubeni Corp.
As part of its concession terms, Maynilad is required to offer at least 30% of its shares to the public by January 2027. However, Fernandez noted that waiting until 2026 might be risky.
“If you understand our predicament, if we push it next year, we might be running out of options,” he explained. “The sweet spot is this year.”
The company has already appointed HSBC, Morgan Stanley, and UBS as financial advisors for the listing.
Investor Outlook
Maynilad’s planned IPO comes at a challenging time for investors, as the benchmark Philippine Stock Exchange Index (PSEi) has dropped nearly 4% year-to-date due to global trade tensions.
Despite this, Pamela Victoriano, senior vice president for investment banking at Unicapital Securities Inc., remains optimistic, stating that the PSEi is undervalued compared to regional markets, which could create opportunities for investors.
“With favorable market conditions, we anticipate more companies tapping the public markets in 2025,” Victoriano said.
