Maynilad Announces Plans for P49 Billion Initial Public Offering
Maynilad Plans Historic P49-Billion IPO in 2025
Concessionaire Maynilad Water Services Inc. is gearing up for what could be the largest initial public offering (IPO) in Philippine history, targeting a stock market debut valued at around P49 billion this year.
In a regulatory filing last Friday, the company announced that its board of directors had approved plans to sell up to 2.46 billion common shares at a maximum price of P20 per share.
Potential Record-Breaking IPO
The IPO will consist of a base offering of 1.81 billion shares, with an overallotment option of 266.31 million shares in case of strong investor demand. Maynilad also has the option to increase its offering by an additional 379.3 million shares.
If the IPO reaches its maximum valuation, Maynilad will surpass Monde Nissin Corp.’s P48-billion offering in 2021, making it the largest IPO in Philippine stock market history.
IPO Timeline and Market Conditions
Maynilad President and CEO Ramoncito Fernandez confirmed that the company is ready to proceed with the IPO this year, depending on macroeconomic and geopolitical factors.
The West Zone concessionaire, jointly owned by DMCI Holdings Inc., Metro Pacific Investments Corp., and Japan’s Marubeni Corp., is required to offer at least 30% of its shares to the public by January 2027 under its concession agreement with the government.
While Maynilad still has over a year to comply, Fernandez noted that delaying the IPO until 2026 might be too tight.
“If we push it next year, we might be running out of options. The sweet spot is this year,” he said.
To prepare for the listing, Maynilad has already appointed HSBC, Morgan Stanley, and UBS as financial advisors.
Market Outlook
The planned IPO comes at a challenging time for investors, with the Philippine Stock Exchange Index (PSEi) down nearly 4% year-to-date due to global trade tensions.
However, Pamela Victoriano, senior VP for investment banking at Unicapital Securities Inc., remains optimistic, saying that the PSEi is currently undervalued compared to regional markets, creating opportunities for investors.
“With favorable market conditions, we anticipate more companies tapping the public markets in 2025,” Victoriano said.
If successful, Maynilad’s IPO could set a new benchmark for Philippine stock offerings, attracting both local and international investors.
