Maynilad Water Services Inc. is poised to raise up to P37.41 billion through an initial public offering (IPO), potentially marking the Philippines’ largest market debut since 2021.

The Securities and Exchange Commission (SEC) has approved the water utility firm’s offering, which involves the sale of up to 1.66 billion common shares priced at P20 each, with an over-allotment option of up to 249 million shares and a preferential offer of up to 24.9 million shares. The offer period will run from 3 to 9 July, with listing on the Philippine Stock Exchange (PSE) slated for 17 July.

Proceeds from the primary offering will be used to fund Maynilad’s capital expenditures and for general corporate purposes. These include upgrades to water treatment facilities and the expansion of water output and wastewater infrastructure across its service area, which spans 17 cities and municipalities in western Metro Manila and parts of Cavite province.

In addition, 354.7 million secondary shares will be sold by Maynilad Water Holding Co. Inc. — a consortium composed of Metro Pacific Investments Corp. (MPIC), DMCI Holdings and Japan’s Marubeni Corp. — at the same IPO price, raising an estimated P7.1 billion. Maynilad will not receive any proceeds from this secondary sale.

Service upgrade

Maynilad reported a record net income of P12.8 billion in 2024, with its first-quarter 2025 profit rising 17 percent year-over-year to P3.6 billion, driven by a 6 percent increase in revenues to P8.6 billion. The firm stated that the IPO proceeds will support major infrastructure investments necessary to enhance service coverage and improve reliability.

The company has committed to accelerating the rollout of its wastewater treatment systems, in compliance with its revised concession agreement with the Metropolitan Waterworks and Sewerage System (MWSS) and the mandates of the Clean Water Act. The MWSS had previously flagged delays in the expansion of sewerage coverage, though Maynilad has since ramped up investments in wastewater projects.

Maynilad is majority-owned by Maynilad Water Holding Co., a private consortium led by Metro Pacific Investments Corp., which is controlled by Indonesian billionaire Anthoni Salim’s First Pacific Company Ltd. and led by CEO Manuel Pangilinan. Metro Pacific also has interests in toll roads, power distribution, healthcare, and agriculture.

Outside of Metro Pacific, First Pacific maintains holdings in PLDT and Philex Mining Corp. Salim and his family, with a net worth of approximately P742 billion, are among the wealthiest in Indonesia.

Another key shareholder is Isidro Consunji, chairman of DMCI Holdings Inc., which began as a construction company in 1954 and has since diversified into coal and nickel mining, residential development, power generation, and cement manufacturing. The Consunji family’s estimated net worth stands at about P197 billion, making them one of the wealthiest families in the Philippines.

Global backing

The IPO is backed by major financial institutions including BPI Capital, HSBC, Morgan Stanley, and UBS, which are acting as joint global coordinators and bookrunners.

If fully subscribed, Maynilad’s IPO will be the biggest in the country since Monde Nissin Corp.’s P55.9-billion listing in 2021.