Maynilad Water Services Inc. is finalizing this week details for its upcoming initial public offering (IPO), with the maximum offer price of the company’s maiden issuance expected to be reduced.
The IPO’s maximum offer price is now seen at P15 per share, lower than the previous P20 per share.
As a result, Maynilad could raise up to P34.3 billion from its IPO eyed next month.
‘The progress is promising and we will file the final prospectus by Friday,’ Maynilad president and CEO Ramoncito Fernandez said.
‘The market is bad. But we are putting in a very successful and incredible story,’ he said.
Fernandez also indicated that there may be additional cornerstone investors that could come in to join the IPO.
Maynilad’s latest prospectus as of Sept. 26 showed that multilateral lending institutions International Finance Corp. (IFC) and the Asian Development Bank (ADB) are looking to invest up to $245 million in Maynilad as cornerstone investors for its upcoming IPO.
IFC has agreed to participate as a cornerstone investor in the offer for an investment size of up to $100 million in peso equivalent at a subscription price of up to P15 per offer share, subject to certain closing conditions and customary requirements.
ADB, meanwhile, is currently contemplating participating as a cornerstone investor in the offer for a potential investment size of up to $145 million in peso equivalent, also at a subscription price of up to P15 per offer share.
The offer period for the IPO is scheduled from Oct. 23 to 29, with Maynilad targeting a listing date of Nov. 7.