WEST ZONE water concessionaire Maynilad Water Services, Inc. is now talking to banks as it prepares for its planned initial public offering (IPO), according to its chairman.
“They’re busy talking to the banks already. We’ll try to put it (IPO) away this year or latest next year,” Maynilad Chairman Manuel V. Pangilinan told reporters on the sidelines of the 77th Management Association of the Philippines inaugural meeting in Taguig City on Wednesday.
In November, Maynilad President and Chief Executive Officer Ramoncito S. Fernandez said the water provider would file its IPO application by the first quarter of 2025.
He said Maynilad was targeting a listing date of either April or July.
“Our target is to be prepared for two possible dates, before the elections in April, or after the elections in July,” he noted.
Mr. Fernandez said that Maynilad has already appointed HSBC, Morgan Stanley, and UBS as the company’s financial advisors.
The Philippine Stock Exchange is expecting to have six IPOs this year.
Signed into law on Dec. 10, 2021, Republic Act No. 11600 granted Maynilad a 25-year legislative franchise until 2047 to establish, operate, and maintain a waterworks system and sewerage and sanitation services in the west zone service area of Metro Manila and Cavite province.
The law also provides that Maynilad should offer at least 30% of its outstanding capital stock within five years from the grant of the franchise.
Pangilinan-led Metro Pacific Investments Corp. (MPIC) has a 53% stake in Maynilad, while Consunji-led DMCI Holdings, Inc. holds a 25% stake. Other investors have the remaining 2%.
MPIC is one of the three Philippine units of Hong Kong-based First Pacific Co. Ltd., the others being Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Revin Mikhael D. Ochave