Maynilad Water Services Inc., which is mulling over its initial public offering (IPO) in November, said it will submit its final prospectus this week to reflect the changes in its registration statement.
The change may include a lower share price and the increase in its cornerstone investors, according to Ramoncito S. Fernandez, Maynilad president and CEO.
He said the cornerstone investors in its maiden offering are already ‘committed.’
‘The progress is promising. And we will file the final prospectus by this Friday. The market is bad. but we are putting in a very successful and incredible story,’ Fernandez said.
According to its latest prospectus, Maynilad’s cornerstone investors include International Finance Corp., the Asian Development Bank and Security Bank Corp.- Trust and Asset Management Group.
Maynilad offer consists of 1.66 billion common shares of primary offer, 24.9 million in preferential offer, with an overallotment option of 249.04 million shares and an upsize option of 354.7 million in secondary common shares. The deal is priced up to P20 per share, but agreements with the cornerstone investors may not push through if the price falls below P15 apiece.
The Securities and Exchange Commission (SEC), meanwhile, has granted the first Philippine Green Equity label to Maynilad, pursuant to the new guidelines issued by the agency to further promote sustainable finance.
In a letter to the company dated September 26, the SEC Markets and Securities Regulation Department confirmed that Maynilad has sufficiently established and demonstrated its compliance with the requirements under the Guidelines on Philippine Green Equity, subject to its continuing compliance with the guidelines.
The green equity guidelines allow publicly listed companies and companies preparing to go public that generate a significant portion of their revenues from, and direct majority of their investments toward, green activities, to distinguish themselves from other issuers through the use of the Philippine Green Equity label.
Under the guidelines, companies intending to carry the Philippine Green Equity Level must be listed on the Philippine Stock Exchange (PSE) or preparing to go public, with more than 50 percent of their revenues and investments (sum of capital expenditure and operating expenditure) earned from or directed toward green activities. Such activities must meet the eligibility criteria of the Philippine Sustainable Finance Taxonomy Guidelines (SFTG) or the Asean Taxonomy for Sustainable Finance (ATSF). Companies’ revenues derived from fossil fuels must also be limited to less than 5 percent.
Based on the assessment report of an external reviewer submitted to the SEC, Maynilad derived 100 percent of its revenues from green activities, such as water supply, wastewater treatment, sanitation services, and installation of new water service connections, in line with the minimum 50 percent requirement as provided under the guidelines.
Assuming that overallotment option and preferential offer are fully subscribed, Maynilad could net up to P37.38 billion from the IPO, but proceeds could be upsized up to P50 billion.
The offer will run from October 23 to 29, with the shares expected to be listed on the main board of the PSE on November 7, according to the latest timeline it submitted to the SEC.