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Maynilad Water Services Inc., the Philippines' largest private water concessionaire, is preparing an IPO worth up to INR 25.3 billion (USD 438 million), which could become the country's largest listing this year. Sources indicate that Cornerstone Investors are expected to acquire over half of the offering, signaling strong institutional confidence. The IPO price is set between INR 14-15 per share, with trading expected on the Philippine Stock Exchange in early November. Proceeds will be directed towards water and wastewater projects, capital expenditure, and general corporate purposes, strengthening the company's infrastructure and operations.
Cornerstone Investors are expected to acquire a significant portion of Maynilad Water Services Inc.'s initial public offering, valued at up to INR 25.3 billion (USD 438 million), making it one of the largest IPOs in the Philippines this year. Advertisement
Maynilad, the largest private water concessionaire in the country, provides services to the west zone of Metro Manila and parts of Cavite province. The company is majority-owned by Metro Pacific Investments Corp, DMCI Holdings, and Japan's Marubeni Corp. Cornerstone investors, typically large institutions committing to buy shares ahead of an IPO, help provide market confidence and stability for major listings.
BDO Capital and Investment Corporation, led by President Eduardo Francisco, has confirmed participation as a cornerstone investor. Other expected participants include abrdn Malaysia, the Asian Development Bank (ADB), the International Finance Corporation (IFC), and Maybank Asset Management. Collectively, these investors may contribute over USD 250 million at a price not exceeding INR 15 per share, according to sources familiar with the matter.
The IPO has been priced in a range of INR 14-15 per share. Final pricing was scheduled later this month, with trading expected to begin on the Philippine Stock Exchange in early November. Maynilad stated that, due to regulatory quiet period rules, it cannot provide further details on transaction specifics, cornerstone participation, or timelines beyond what is already disclosed in its prospectus.
An ADB spokesperson said the bank is considering participation as a cornerstone investor, subject to internal approvals, due diligence, and documentation. IFC declined to comment, while Maybank Asset Management and abrdn did not respond to requests for comment.
Proceeds from the primary share sale are planned to fund capital expenditures for water and wastewater projects, as well as for general corporate purposes. These funds will help Maynilad enhance service delivery, expand infrastructure, and strengthen operations in Metro Manila and nearby areas. The listing also reflects growing institutional interest in the regulated water sector, highlighting the strategic importance of utilities as long-term investment opportunities in the region.
Source Reuters
5th Jun, 2025
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