Maynilad Water raises $694 million in largest Philippine IPO since 2021

Maynilad Water Services, a company providing water utility services in western Metro Manila and parts of Cavite province, has announced plans to raise 38.6 billion pesos (approximately $694 million) through an Initial Public Offering (IPO). This IPO was approved by the Securities and Exchange Commission, allowing Maynilad Water to sell up to 1.9 billion shares at an offering price of 20 pesos each. The maiden offer also includes options for additional shares, which could increase the raised capital by around 7.1 billion pesos from the sale of secondary shares. The offer period is set to run from July 3 to July 9, with the official listing on the main board of the Philippine Stock Exchange scheduled for July 17. This IPO is notable as it marks the largest in the Philippines since Monde Nissin's IPO in 2021, which raised around $1.1 billion. Companies such as BPI Capital, HSBC, Morgan Stanley, and UBS will act as joint global coordinators and bookrunners for this significant financial event. Financially, Maynilad Water has shown positive growth, reporting a 17% rise in net profit during the first quarter, totaling 3.6 billion pesos, with sales increasing by 6% to reach 8.6 billion pesos. Their strong financial performance builds confidence in their upcoming IPO, as they aim to utilize the raised capital to upgrade their facilities and expand their water output capacity, which is essential given the increasing demand for water services in the growing regions they serve. The company is a subsidiary of Metro Pacific, which also operates in various sectors including hospitals and toll roads. The wealth and stability of its parent company, headed by tycoon Manuel Pangilinan, coupled with the financial backing from reputable shareholders, contribute significantly to Maynilad Water's promising market position. With the continued growth prospects following the anticipated capital raise, Maynilad aims to enhance its operational efficiency and service delivery, reflecting the broader opportunity within the Philippine infrastructure sector for growth and improvement.