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Reps task SEC to review ?1bn capital requirement for virtual assets providers

The House of Representatives has called on the Securities and Exchange Commission (SEC)the ?500 million to ?1 billion capital requirement set by the for Virtual Assets Service Providers (VASPs) saying it’s too high and prohibitive.

Olufemi Bamisile, chairman of the Ad-Hoc Committee on Economic, Regulatory, and Security Implications of Cryptocurrency Adoption and Point-of-Sale (POS) Operations in Nigeria made the observation during its technical session with key regulatory and security agencies held at the National Assembly Complex on Monday in Abuja.

Members of the committee noted that while regulation of the cryptocurrency sector is essential, the current capital threshold could stifle innovation, discourage legitimate investors, and exclude emerging entrepreneurs, particularly young Nigerians, who hold the potential to drive economic growth and Nigeria’s digital transformation.

The Committee therefore urged the SEC to review the capital requirement to make it more accessible and inclusive.

During the session, the Economic and Financial Crimes Commission (EFCC) informed the Committee that all confiscated virtual and digital assets linked to criminal activities are currently in its custody. The Commission disclosed that it maintains dedicated digital wallets across its zonal offices for the safekeeping of such assets.

In response, the Committee directed the EFCC to provide comprehensive records of all digital asset confiscations to support its ongoing legislative review and policy recommendations.

Bamisile reaffirmed the Committee’s commitment to developing a regulatory framework that balances innovation with oversight, safeguards the financial system, and promotes transparency, youth inclusion, and national security in Nigeria’s digital economy.

The Committee, however, expressed displeasure over the failure of several key institutions, including the Office of the National Security Adviser, Central Bank of Nigeria, Nigerian Communications Commission, Federal Inland Revenue Service, Ministry of Finance, and Ministry of Communications, Innovation and Digital Economy, to honour its invitation to the meeting.

The Chairman urged these agencies to take seriously the economic and security implications of the rapidly evolving digital finance sector.

Coca-Cola woos Gen Zs with ‘Share-a-Coke’ campaign

Coca-Cola has announced plans to re-introduce its ‘Share a Coke’ campaign, in which customers can find different names on Coca-Cola bottles and cans.

The company said in a statement on Monday that the brand relaunch would be on an unprecedented scale of shareability and personalisation for a new generation, pushing the boundaries of innovative brand experiences.

It explained that in 2011, ‘the brand launched this first-of-its-kind campaign in which you could find your name in place of the logo – an industry-first in personalisation. Now, the brand wants customers to ‘share a Coke’ with their friends to celebrate friendship and create memories that will last a lifetime.

‘The new campaign will have a focus on Gen Z, whom, according to the company, were very young when the first campaign hit the market in 2011. The company statement said further that it had found out that 72 per cent of Gen Z crave authenticity and want to connect with real people in everything they do, and the current campaign.’

Valerie Odubogun, director, Frontline Marketing, Coca-Cola Nigeria, said: ‘In today’s digital world, it is important to celebrate the unique bonds of friendships and celebrate this important human connection. ‘Share a Coke’ reminds us that memories happen when we come together and experience the real magic of human connection; those spontaneous moments of laughter, stories, and genuine connection, shared over a Coca-Cola can, make life so special.’

Under the current campaign, the company said that the brand’s unique customisation platform offers more names to choose from and the ability to add one’s personal touch and create a truly unique Coca-Cola can or bottle to express appreciation for friends, family, and loved ones.

According to the statement, in a world where interactions online can feel momentary, sharing a Coke offers a tangible way to show you care.

‘Meaningful connections thrive both online and offline. While digital spaces keep us close, it’s those shared moments in real life that make for long -lasting memories, yet the physical ‘third spaces’ that nourish these meaningful connections are in decline. ‘Share a Coke’ is celebrating the connections and experiences that define this generation in spaces that allow moments of togetherness to thrive,’ the company stated.

ICTSI meets Oyetola to discuss next phase of Onne Terminal expansion

A delegation from International Container Terminal Services Inc. (ICTSI) has met with Adegboyega Oyetola, Nigeria’s minister of marine and blue economy to discuss the next phase of expansion and operational improvements at the Onne Multipurpose Terminal in Rivers State.

The meeting, held in Abuja, was led by Farouk Aliyu, chairman of ICTSI Nigeria, and Nicolo Scannavini, managing director of Onne Multipurpose Terminal (OMT). Their discussions centred on exploring strategies for future expansion and efficiency enhancement in line with the federal government’s plans for the blue economy.

Oyetola commended ICTSI for its continued investment in Nigeria’s maritime sector, describing the company as a dependable partner in the nation’s efforts to build a globally competitive port system.

‘We will continue to work with credible private investors like ICTSI to unlock the immense potential of our blue economy,’ he said.

Since beginning operations in 2021, the Onne Multipurpose Terminal has become a notable logistics hub, handling containers, break bulk, project cargo, and roll-on/roll-off shipments.

In June, it became one of the first terminals in West Africa to receive an LNG-powered container ship, the Kota Oasis, flying the Singaporean flag. The terminal has also invested in local community projects, including water supply schemes and youth empowerment programmes in Ogu and neighbouring areas.

Supply chain challenges could cost airlines over $11bn in 2025 – IATA

The International Air Transport Association (IATA) has disclosed that supply chain challenges, leading to a slow pace of production, are estimated to cost the airline industry more than $11 billion in 2025, driven by fuel, maintenance, engine leasing, and surplus inventory holding.

Challenges within the aerospace industry’s supply chain are delaying production of new aircraft and parts, resulting in airlines reevaluating their fleet plans and, in many cases, keeping older aircraft flying for extended periods of time. The worldwide commercial backlog reached a historic high of more than 17,000 aircraft in 2024, significantly higher than the 2010 to 2019 backlog of around 13,000 aircraft per year.

Excess fuel costs (~$4.2 billion): Airlines are operating older, less fuel-efficient aircraft because new aircraft deliveries are delayed, leading to higher fuel costs.

Additional maintenance costs ($3.1 billion): The global fleet is ageing, and older aircraft require more frequent and expensive maintenance.

Increased engine leasing costs ($2.6 billion): Airlines need to lease more engines since engines spend longer on the ground during maintenance. Aircraft lease rates have also risen by 20-30 per cent since 2019.

Surplus inventory holding costs ($1.4 billion): Airlines are stocking more spare parts to mitigate unpredictable supply chain disruptions, increasing inventory costs.

In addition to the mounting costs, supply chain challenges inhibit airlines from deploying sufficient aircraft to meet growing passenger demand. In 2024, passenger demand rose 10.4 percent, exceeding the capacity expansion of 8.7 percent and pushing load factors to a record 83.5 per cent. The trend in rising passenger demand continues into 2025.

The current aerospace industry economic model, disruptions from geopolitical instability, raw material shortages and tight labor markets all contribute to the origin of the matter. With these underlying causes considered, the report outlines key initiatives for original equipment manufacturers (OEMs), lessors, and suppliers supported by airlines to confront the supply-demand imbalance and build greater resilience.

‘Airlines depend on a reliable supply chain to operate and grow their fleets efficiently. Now we have unprecedented waits for aircraft, engines and parts and unpredictable delivery schedules. Together these have sent costs spiralling by at least $11 billion for this year and limited the ability of airlines to meet consumer demand. There is no simple solution to resolving this problem, but there are several actions that could provide some relief,’ Willie Walsh, IATA’s director general said.

Walsh stated that to start, opening the aftermarket would help by giving airlines greater choice and access to parts and services.

‘In parallel, greater transparency on the state of the supply chain would give airlines the data they need to plan around blockages while helping OEMs to ease underlying bottlenecks.’

In collaboration with Oliver Wyman, a global leader in management consulting and a business of Marsh McLennan (NYSE:MMC), launched a joint study, Reviving the Commercial Aircraft Supply Chain. The report addressed supply chain challenges in the aerospace industry, and explored the root cause of these challenges, the impact on airlines, and initiatives to move the aviation industry forward.

There are actions for the aerospace industry to consider are:

Open up aftermarket best practices by supporting Maintenance, Repair and Operations (MRO) to be less dependent on OEM-driven commercial licensing models, as well as facilitating access to alternative sourcing of materials and services.

Enhance supply chain visibility by creating clearer visibility across all supplier levels to spot risks early, reduce bottlenecks and inefficiencies, and use better data and tools to make the whole chain more resilient and reliable.

Unlock value from data by leveraging predictive maintenance insights, pooling spare parts, and creating shared maintenance data platforms to optimize inventory and reduce downtime.

Expand repair and parts capacity to accelerate repair approvals, support alternative parts and Used Serviceable Material (USM) solutions, and adopt advanced manufacturing to ease bottlenecks.

To enact any of these initiatives, the first and most critical step for commercial aerospace industry participants to take is to develop a strategic approach among all stakeholders in the supply chain. The multi-headed challenges facing the industry call for collaboration to progress in the goal of better meeting aircraft production and maintenance demand.

‘Today’s aircraft fleet is larger, more advanced, and more fuel efficient than ever before,’ said Matthew Poitras, Partner in Oliver Wyman’s Transportation and Advanced Industrials practice.

‘However, supply chain challenges are impacting airlines and OEMs alike. We see an opportunity to catalyze an improvement in supply chain performance that will benefit everyone, but this will require collective steps to reshape the structure of the aerospace industry and work together on transparency and talent.’

Agric experts harp on livestock investment to tackle food security

A group under the auspices of the Animal Science Association of Nigeria (ASAN) has stated that investment in crop production alone will not ensure food security in the country.

Peter Uadia Aikhuomogbe, the state chairman of the association, stated this in his welcome address during the maiden week/World Egg Day 2025 of the body in Benin City.

Aikhuomogbe, a retired permanent secretary in the Edo State Ministry of Agriculture and Food, noted that negligence in livestock investment would continue to undermine the country’s quest for food security.

He added that governments at all levels have emphasised crop production in terms of technology dissemination, with little emphasis on the livestock sector.

He, however, opined that the livestock sector is also strong in helping to solve the problem of food security in any nation.

According to him, the livestock subsector holds the key to unlocking immense economic potential, ensuring food security, and creating sustainable livelihoods for millions.

The ASAN chairman, however, posited that the livestock subsector is beset by challenges from the rising cost of feeds and the existential threat of climate change, to the persistent scourge of disease and the need for a modern regulatory framework.

While noting that the challenges are not those that can be faced in isolation, he added that the ‘academic cannot solve them from the laboratory alone, the farmer cannot overcome them from the farm alone, and the government cannot regulate them from the office alone without working with all the stakeholders.

Speaking on the theme of the week titled, ‘From Lab to Farm: Forging a stronger handshake between Animal Science Academia and Public Service for a thriving Livestock Sector’, underscored the importance of partnership between researchers, policy makers and farmers.

‘The week is all about bridging the gap between researchers and policy makers. We see technologies that are developed at the research level, but they are not going down to the end users, especially those in livestock production.

‘For too long, a gap has existed between the ground-breaking research conducted in our academic institutions. The ‘Lab’ and the daily realities faced by the farmers on the farm.

‘The handshake between the researcher who develops a climate-resilient breed and the farmer who needs it to survive a drought has often been weak. The connection between the policymaker in the public service and the animal scientist on the ground has, at times, been disconnected.

‘Today, we declare our intention to change that. We are here to forge a stronger, firmer, and more productive handshake. A handshake that transfers knowledge, builds trust, and creates shared prosperity.

‘So, we are trying to bridge that gap. We want the academia to have a handshake with officers in the agricultural sector so that they can go to the same technologies that have been developed at the research level to find out who the end users are. That gap is very wide as we speak. So we need to close it’, he said.

In his goodwill message, Andrew Omosefe, the Acting Provost, Edo State College of Agriculture and Natural Resources, Iguoriakhi, commended the association for its efforts in uniting stakeholders toward harnessing the vast agricultural potential of Edo State and beyond.

Omosefe represented by Sonia Obazee, the Public Relations Officer of the College, said the theme of the programme aligned with the ‘SHINE Agenda of Governor Monday Okpebholo-led government in the state.

Musibau Bamikole of the department of Animal Science, University of Benin, UNIBEN, and David Bamigboye, the managing director, Animal Healthcare Centre, Benin City, delivered lectures on the topic Climate-Smart Livestock Production.

Another lecture titled’ Biosecurity, animal health, and disease prevention’ was delivered by James Imasuen, Department of Animal Science, University of Benin and Haruna Thomas, director of Veterinary Sciences, Edo State Ministry of Agriculture and Food Security.

The high point of the event was the presentation of awards to Francis Uujamhen, the managing director of FEM farms, as the industry champion and David Bamigboye, the managing director of Animal Healthcare centre, as a young agro innovator.

Akume task youths on voters registration

George Akume, Secretary to the Government of the Federation (SGF), has charged Nigerian youths to take advantage of the ongoing voter registration exercise to engage in the democratic process.

This is just as he emphasised that their participation is crucial to strengthening democracy and ensuring good governance in the country.

Akume made the call when a delegation of the President’s National Youth Service Corps (NYSC) Honour Award from Benue extraction led by Simeon Aer, it’s leader, paid him a courtesy visit in Abuja.

Segun Imohiosen, the Director, Information and Public Relations, office of the SGF, in a statement , said Akume also underscored the premium the Tinubu-led administration places on the welfare of youths through empowerment and provision of an enabling environment to enable them harness their potential for national development.

He therefore urged them to participate in voter registration and vote for President Bola Ahmed Tinubu for inclusivity and sustainable development.

Akume congratulated the recipients of the President’s NYSC Honour Award for their meritorious service to their fatherland.

He also urged them not to relent in the pursuit of their dreams and aspirations in life, assuring them that they have what it takes to be where he is and even beyond. He further assured them of automatic employment to enable them to contribute their quota to national development.

Speaking earlier, Simeon Aer, leader of the delegation of the President’s NYSC Honour Award, said that the purpose of the visit was to present to the SGF the numerous awards they received in recognition of their selfless service to the nation during their NYSC.

He also presented the Female Overall Best NYSC member, Akase Patience Nguwasen, to the SGF.

Also speaking, Patience Nguwasen, the Female Overall Best NYSC member (2020-23), thanked President Bola Tinubu for the honour and also expressed her gratitude for acknowledging her contribution to the nation during her national service.

She also advised the current and prospective corps members to put the passion for service to the nation above money so that they will leave a mark after the completion of their national service.

‘The awardees were from Benue extraction, who were also among the 200 recipients of the President’s NYSC Honour Award presented by President Bola Ahmed Tinubu in recognition of their outstanding service to the nation from 2020-2023.’

Fair price for rice better than cash aid-lawmaker

The chairman of the Senate agriculture committee pushed for the issuance of an executive order (EO) to establish a floor price for palay (unmilled rice) for government purchases for its rice distribution programs.

The call by Senator Francis Pangilinan followed calls by various farm groups for the floor price and amid testimony by Nueva Ecija farmers about how the scandalously low pricing set by traders leaves farmers in debt because the farmgate is way below their production cost.

The executive order for a floor price, according to Pangilinan, would apply to all government purchases and align with the full implementation of the Sagip Saka Act or Republic Act 11321, to ensure that farmers receive fair compensation for their hard work, especially in light of declining farmgate prices.

‘Kapag ang palay ay binili ng walo hanggang sampung piso kada kilo habang ang production cost ay katorse hanggang kinse pesos, kulang ang anumang ayuda para punan ang lugi [When palay is being bought at only P8 to P10 per kilo while it costs farmers P14 to P15 to produce it, no amount of aid will make up for their losses],’ Pangilinan said over the weekend.

‘Hindi nila kailangan ng abuloy. Kailangan nila ng patas na presyo sa bunga ng kanilang lakas . . . Kaya ang isa sa matagal na nating panawagan ay floor price, para pumatas naman ang laban ng mga nagpapakain sa atin (Our farmers don’t need charity. They need fair price for the fruits of their labor . . . That’s why a floor price is what we have been calling for, so that the people who feed us may have a fighting chance.’

Earlier, Danilo Bolos, a rice farmer from Nueva Ecija told a House of Representatives’ hearing that what rice farmers need is higher buying prices for palay, not another wave of cash assistance. Bolos told the House committees on agriculture and food and ways and means that the practice of providing them aid makes them look like beggars.

Pangilinan said the EO he is seeking ‘is proof that the government is listening to the concerns of our farmers, and we appreciate their hard work.’

Speaking mostly in Filipino, he said, ‘Our rice farmers will have some breathing space with the floor price. They will have some protection from traders who capitalize on their desperation. This is one of the many steps so that our rice farmers will rise from subsistence to abundance agriculture.’

He said a floor price will stabilize the market, protect farmers from exploitative traders, and encourage continued rice production, a critical measure as the country pursues long-term food security.

Pangilinan pointed out that a month after a temporary ban was imposed on rice imports, farmers are still grappling with market realities.

‘The farmers are still forced to accept notoriously low prices for their harvest. They never have enough to pay for all the costs of planting. Not even for their family’s own consumption.’

Speaking in Filipino, he estimated that every year, ‘tons and tons of rice are bought by the DSWD, DOH, and DepEd for their programs. In the 2025 budget of DILG alone, over P278 million is allocated for the rice subsidy. If we combine that with the rice purchase schemes of the LGUs, that means a massive amount-and if we implement the Sagip Saka Act, that is money going to the pockets of farmers.’

Advancing toward a defined future in oil and gas exploration

IN a move that redefines the country’s energy frontier, President Ferdinand R. Marcos Jr. on Wednesday unveiled eight new Petroleum Service Contracts (PSCs)-covering exploration blocks across the Sulu Sea, Cagayan, Cebu, northwest Palawan, east Palawan, and Central Luzon. It is, by all accounts, the largest batch of PSCs ever awarded in a single stroke in Philippine history. And it signals the government’s resolve for energy self-sufficiency-a dream that other heads of state nurtured.

‘Today marks a milestone,’ declared Energy Secretary Sharon Garin, as she welcomed Philippine and international partners from Australia, the United Kingdom, Singapore, Israel, and the United States during the signing ceremony in Malacañang. ‘This is the largest batch of Petroleum Service Contracts awarded in a single period-a powerful demonstration of this administration’s resolve to accelerate exploration and production of our country’s indigenous energy resources.’

The eight contracts signal a resurgence of investor confidence in the nation’s upstream energy sector -a critical push amid the waning output of the Malampaya gas field, once the country’s energy lifeline. Collectively, the PSCs represent a potential investment commitment of $207 million, or roughly P12 billion, over a seven-year exploration span.

The DOE notes that these include the world’s first competitive bid round for native hydrogen and co-managed petroleum projects with the Bangsamoro Autonomous Region in Muslim Mindanao (BARMM)-an unprecedented stride toward inclusive, regionally balanced energy development, the sort of economic push of President Marcos to ensure that other regions benefit too, not necessarily that of Imperial Manila.

Secretary Garin affirmed that the DOE remains steadfast in ensuring the complete and timely implementation of these service contracts, calling them cornerstones of long-term energy security and sustainability.

This new dawn follows a long, uncertain interlude. When the Malampaya discovery electrified the nation in 1989, and exploration fever gripped the archipelago. But over the decades, the flame dimmed. Senate deliberations leading to the passage of Republic Act 12120, or the Philippine Natural Gas Industry Development Act, exposed the sobering truth: exploration had stalled.

Regulatory opacity, shifting fiscal regimes, and the absence of a coherent roadmap had turned investors away. The once-golden promise of our sedimentary basins was abandoned like Mount Diwalwal after its gold rush-rich in potential, chaotic in governance, and strewn with the remains of broken dreams.

Now, the DOE under Secretary Garin is rewriting the investment playbook. Through Department Circular No. DC2025-09-0017, titled ‘Grant of Special Allowances for Petroleum Service Contractors,’ the agency has crafted a more predictable, investor-friendly framework that still upholds the constitutional 60-40 equity rule.

Under this new regime, service contractors may deduct special allowances from gross proceeds, while the government retains its 60 percent share calculated from gross income less operating expenses. Operating expenses of up to 70 percent will now be reimbursable, giving investors not just relief but confidence.

For marginal petroleum operations, an additional allowance kicks in when costs exceed the 70 percent threshold-ensuring that even frontier fields with higher geological risk are not left behind. Moreover, a 5 percent allowance on gross proceeds awaits companies that pioneer the first commercial developments in untapped basins. These were the incentives that were dangled to push oil drilling operations to new frontiers.

As the circular emphasizes, there is a ‘need to offer improved fiscal terms to complement other government initiatives in attracting more exploration and production companies.leading to the discovery of more oil and gas fields in the country.’ Other Asean neighbors-Malaysia and Indonesia, notably-had long understood the power of incentives. They lured explorers with accelerated capital allowances, tax holidays, and export duty waivers. The Philippines, at last, is catching up, balancing national benefit with private enterprise vitality.

The DOE’s approach aligns with Presidential Decree No. 87, the Oil Exploration and Development Act of 1972, yet modernizes it for a 21st-century context-one that rewards both discovery and discipline, risk and responsibility. The extension of Service Contract 38 over Malampaya, the passage of RA 12120, and now the issuance of this special allowance circular all point to a unified direction: the rebirth of Philippine exploration.

Each well drilled, each contract signed, is more than a line in the DOE’s ledger-it is a testament to the nation’s will to secure its own energy destiny. If the past decades were marked by drift and delay, the present signals movement, method, and momentum. And as the Philippines reclaims its place among serious energy explorers, the message is clear: We are done waiting for luck. We are now drilling for our future.

Exec: Govt support key to cocoa industry revival

The Philippines could reclaim its position as one of Asia’s top cocoa producers if farmers would receive adequate funding and proper training to prop up their output, according to the founder of a newly launched homegrown chocolate brand.

Raul Matias, owner and founder of Bayani Chocolate, said in an interview with BusinessMirror during the brand’s launch on Saturday at Opus Mall in Quezon City that while the Philippines was once a promising player in the global cocoa market due to its favorable geographic and climatic conditions, limited government support and inconsistent farming practices have long stifled the industry’s growth.

‘I hope they [government] give us attention, especially the farmers, to give them money where they can allocate money,’ Matias said. ‘I know we have so many problems, but I think we have a potential to be one of the significant suppliers of cocoa.’

He added that due to the current shortage of local cacao, the brand is now ‘forced to source ingredients from other countries, such as Indonesia and Malaysia, instead of sourcing primarily from the Philippines.’

Historical data from the Department of Agriculture (DA) showed that cacao was first planted in the Philippines in 1670, with production peaking at 35,000 metric tons (MT) by 1990. Output later declined due to weather disturbances, pest and disease infestations, aging trees, and competition from other crops such as banana and palm oil.

Between 2020 and 2022, the Philippines experienced a supply-demand gap in cocoa production, as local output of around 10,000 to 15,000 MT per year could not meet the estimated annual consumption of about 50,000 MT. The gap continues to persist as demand grows faster than production. Average yields remain low at around 0.5 to 1 kilogram per tree annually-well below the industry target of 2 kilograms per tree.

Recent data from the Philippine Statistics Authority (PSA) showed some improvement, with cacao production reaching 2,980 MT from January to March 2025, up 23.6 percent from 2,410 MT in the same period last year. The Davao Region remained the top producer, accounting for 64.2 percent of national output, or 1,910 MT.

Despite the increase, productivity challenges remain, particularly due to high seedling mortality rates and limited technical knowledge among growers.

‘The problem with the Philippine cocoa is the fermentation,’ Matias said.

He said some farmers shorten the fermentation process to three or four days instead of the standard period, which affects the flavor once the beans are roasted and ground.

‘Some say it takes seven to eight days, but many only ferment for three or four days. When that happens, the bitterness comes out when you roast and grind the beans.’

He added that the practice is often driven by economic necessity. ‘You can’t blame them-they just want to make a living,’ Matias said, noting that many locally made chocolate tablets in the market come from improperly fermented beans.

Meanwhile, Matias also urged fellow local entrepreneurs to produce better-quality products to strengthen Filipino brands in the market.

‘I hope to the Filipinos, to the businessmen, make your brands marketable, don’t make mediocre brands,’ Matias said. ‘If we give consumers better options, they’ll choose local brands.’

Maynilad’s IPO to push thru-execs

THE top executives of Maynilad Water Services Inc. said the company’s initial public offering will be pushing through in a few weeks’ time after they clinched a deal with cornerstone investors who would take in more than half of the offered shares.

‘It’s going pretty well so far. I think they (cornerstone investors) should get between $500 million and $600 million (worth of shares),’ Maynilad Chairman Manuel V. Pangilinan said at the sidelines of the Finex Annual Conference last Friday.

Pangilinan said those shares may be priced at P15 per share. ‘That’s what we’re aiming for,’ he added.

Maynilad Vice-Chairman Isidro A. Consunji said the IPO seems a go, as he said there doesn’t seem to be any problem with the company going public.

People familiar with the transaction said the cornerstone investors will be taking up more than 50 percent of the offered shares equivalent to about 30 percent of Maynilad’s outstanding shares post-IPO.

The West Zone concessionaire is offering a total of 2.29 billion shares for up to P20 apiece. The deal consists of a primary offer of 1.66 billion new common shares, a preferential offer to First Pacific Co. of 24.9 million new shares; an upsize option of 354.7 million secondary shares of shares owned by existing shareholders and an overallotment option of up to 249.05 million shares.

Fully subscribed at P20 apiece, gross proceeds could reach P45.8 billion or $785 million. A price of P15 per share, meanwhile, will yield some P34.35 billion or $588 million.

The IPO will be priced on October 20 and the offering period will run from October 23 to October 29, with listing at the Philippine Stock Exchange set to November 7.

If it pushes through, Maynilad’s offering would only be the second IPO in the country so far, as jittery market conditions pulled back plans by other companies to go public.

Cornerstone investors will be led by the International Finance Corp. and the Asian Development Bank, according to the company’s prospectus.

The water firm also signed cornerstone investment agreements with 10 more international and domestic institutions led by the UK’s Foreign, Commonwealth and Development Office, acting through its ‘Mobilising Capital through Listed Products’ (Mobilist).

The international cornerstone investors are led by Mobilist and includes: abrdn Malaysia Sdn Bhd; Maven Investment Partners Ltd-Hong Kong Branch; Maybank Asset Management Singapore Pte. Ltd.; Robeco Switserland Ltd.; and, QRT Master Fund SPC-Torus Fund SP.

The domestic cornerstone investors, meanwhile, include BPI Asset Management and Trust Corp.; Metropolitan Bank and Trust Co.; BDO Capital and Investment Corp.; and, Security Bank Corp.-Trade and Asset Management Group.

Maynilad said each of the cornerstone investors have entered into a cornerstone investment agreement with the firm and the international underwriters or lead domestic underwriter to purchase offer shares at the determined offer price.

The IFC is investing up to $100 million at a subscription price of up to P15 per share while the ADB is considering an investment of $145 million also at the same price.

Robeco is investing up to $20 million with no indicated maximum price while Mobilist and BDO Capital are subscribing at up to P15 per share with no committed amount. No committed amount and/or maximum price have been disclosed for the other cornerstone investors.