Maynilad sees 2025 as IPO ‘sweet spot’

Maynilad Water Services Inc. is racing to go public, with president and CEO Ramoncito Fernandez saying the company is making all the necessary preparations to ensure it is "push-button ready" within this year.

"The sweet spot is this year, and we have banks helping us," Fernandez said at a recent media briefing, referring to HSBC, Morgan Stanley, and UBS, which have been tapped as financial advisors for the planned listing.

With the clock ticking on its franchise requirement to publicly list its shares before January 2027, Maynilad is looking to capitalize on favorable market conditions.

Fernandez confirmed that the IPO will include both local and overseas investors, while also indicating that the company is open to a larger offering if market dynamics allow.

At the same time, existing shareholders, particularly Marubeni Corp., which holds a significant stake in the company, will be considered in the plan.

Maynilad plans to sell up to 2.46 billion shares at a maximum price of P20 each, potentially raising around P49 billion.

If the final price reaches this level, it would surpass Monde Nissin’s P48 billion IPO record from 2021.

Timing, however, remains a key factor. While the company is targeting a launch this year, Fernandez previously said that the political landscape, particularly the upcoming local elections, could play a role in the decision.

“If we push it next year, we might be running out of options,” Fernandez noted.

Over the weekend, Maynilad reported an increase in water production capacity by about 315 million liters per day (MLD) in 2024, improving its ability to sustain uninterrupted service with the onset of the dry season. This followed efforts by the Metropolitan Waterworks and Sewerage System and the National Water Resources Board to ensure Angat Dam was adequately filled earlier this year, securing a stable raw water supply for the dry months.

2024 milestones
Other major accomplishments last year included the expansion of the Poblacion Water Treatment Plant in Muntinlupa, which now supplies 150 MLD, and an additional 20 MLD from the Laguna Lake Modular Treatment Plant, complementing Putatan Water Treatment Plants 1 and 2.

The company has also intensified pipe replacement and leak repairs to recover more water, commissioned the Anabu Modular Treatment Plant to contribute 12 MLD from the Imus River, and reactivated deep wells to tap additional groundwater sources.

As the largest private water concessionaire in the country, Maynilad serves millions of customers across the West Zone of the Greater Manila Area, including parts of Metro Manila and Cavite.

A successful IPO would not only fulfill its regulatory obligations but also provide fresh capital for expansion and infrastructure improvements, ensuring continued service reliability for its growing customer base.