Maynilad Water Services, Inc. stands to raise up to P37.41 billion from its upcoming initial public offering (IPO), following the Securities and Exchange Commission’s (SEC) approval of the West Zone concessionaire’s registration statement.

The regulator confirmed on Monday that the SEC Commission En Banc cleared Maynilad’s offering of up to 1,934,269,800 primary shares and 354,704,200 secondary shares in its 30 May resolution.

The offer, subject to final compliance with regulatory requirements, includes up to 1,660,317,400 common shares priced at up to P20 each, with an overallotment option of up to 249,047,600 shares and a preferential offer of up to 24,904,800 shares. 

Secondary shares

The secondary shares will be sold by existing shareholder Maynilad Water Holding Company Inc., with proceeds from that portion going to the seller.

Net proceeds, although lower than the original target of P49 billion, from the offering will be used to fund Maynilad’s capital expenditures and general corporate purposes.

Offer period 

The offer period is scheduled from 3 to 9 July, with listing on the Philippine Stock Exchange’s main board set for 17 July, according to the company’s latest timeline.

Maynilad has appointed BPI Capital Corp., The Hongkong and Shanghai Banking Corporation Limited, Morgan Stanley Asia (Singapore) Pte., and UBS AG, Singapore Branch as joint global coordinators and joint bookrunners.