Pangilinan-led Maynilad Water Services, Inc. has scored the first-ever Philippine Green Equity label from the Securities and Exchange Commission (SEC), ahead of its planned P37.38-billion initial public offering in November.

The regulator said Wednesday that its Markets and Securities Regulation Department confirmed that Maynilad had “sufficiently established and demonstrated its compliance with the requirements under the Guidelines on Philippine Green Equity, subject to its continuing compliance with the guidelines.”

According to an external review submitted to the SEC, Maynilad derived 100 percent of its revenues from green activities such as water supply, wastewater treatment, sanitation services, and installation of new service connections.

It also reported that 95 percent of capital spending and 87 percent of operating expenses were aligned with green activities, with no revenues from fossil fuels.

The SEC gave Maynilad one year to align its operations with either the Philippine Sustainable Finance Taxonomy Guidelines or the ASEAN Taxonomy for Sustainable Finance.

The Commission launched the guidelines on 23 September through SEC Memorandum Circular No. 13, Series of 2025, the first in Southeast Asia. 

The framework allows publicly listed firms or companies preparing to go public that generate more than 50 percent of revenues and investments from green activities to carry the Philippine Green Equity label.

Revenues from fossil fuels must also be limited to less than five percent.

The recognition comes ahead of Maynilad’s planned listing on November 7, where it will offer up to 1.66 billion common shares, including an overallotment of 249.05 million shares and a preferential tranche of 24.9 million shares, priced at up to P20 each.

If fully subscribed, the IPO could raise P37.38 billion, lower than its original P49-billion target.

Maynilad has also secured commitments from cornerstone investors International Finance Corp. and the Asian Development Bank, which together plan to invest up to $245 million in the IPO.

The offer period will run from 23 to 29 October, based on its latest SEC filing.