Maynilad Water Services Inc. has secured the support of the United Kingdom for its upcoming stock market debut, signaling strong demand for what would be the country’s largest-and last-initial public offering (IPO) this year.
In its preliminary prospectus dated Oct. 3, Maynilad said it now had a cornerstone investment agreement with the UK Foreign, Commonwealth and Development Office through its Mobilising Capital Through Listed Products (Mobilist) program. The concessionaire clarified, however, that the participation of Mobilist as a cornerstone investor would be finalized only if the IPO price does not exceed P15 per share.
This also goes for International Finance Corp. and Asian Development Bank, both of which are considering investing $100 million and $145 million, respectively.
The Mobilist program is an initiative by the British Investment Partnership that aims to support infrastructure development and green transition in Southeast Asia.
Last year, it chipped in $12.5 million into the IPO of Edgar Saavedra-led Citicore Renewable Energy Corp.
Since then, the UK government has committed to boost trade and investment flows to the Philippines, particularly looking at sustainability-related projects.
For its part, Maynilad recently received the Philippines’ first Green Equity label, which would allow it to attract more investors by tagging its shares as ‘green’ prior to its offer.
‘We are proud to reach this point in Maynilad’s story,’ Maynilad president Ramoncito Fernandez said in a statement on Sunday night.
‘Our journey has always been guided by a clear mission-to deliver safe, sustainable and reliable water and wastewater services to our customers,’ he added. ‘The submission of our preliminary prospectus marks another step in that mission, as we open the door for broader public participation while continuing to comply with all regulatory processes.’
Apart from Mobilist, asset management firm Robeco Switzerland Ltd. is also participating as a cornerstone investor for an investment size of up to $20 million.
Others are Maybank Asset Management Singapore Pte. Ltd., Maven Investment Partners Ltd. – Hong Kong Branch, abrdn Malaysia Sdn. Bhd. and QRT Master Fund SPC – Torus Fund SP.
Maynilad plans to raise up to P34.33 billion from its IPO. The offer period is scheduled from Oct. 23 to Oct. 29, with listing on the main board of the Philippine Stock Exchange set on Nov. 7.
The final price will be determined on Oct. 20.Maynilad, whose service area covers the West Zone of the Greater Metro Manila area, also recently confirmed it was ‘looking’ at a potential buyout of the Villar group’s PrimeWater Infrastructure Corp.