According to analysts, Maynilad Water Services, Inc. The planned initial public offering (IPO) of IPO is expected to increase interest in the Philippine stock market and improve investor sentiment.
“I think it's helpful because doing this at least brings attention to the Philippines. The successful listing and strong demand will show investors that the Philippines has some bright spots,” Eduardo V. Francisco, president of BDO Capital & Investment Corp., said in an interview. businessworld Last week.
Gabriel U., head of corporate finance at BDO Capital. Lim said the size of the offering could have a meaningful impact on market activity. “Given the size of the stock market, this will probably be a catalyst for that,” he said.
Maynilad is offering 1.66 billion common shares to the public, including 24.9 million primary shares allotted to First Pacific Co., Ltd. The IPO also includes an aggregate allotment option of up to 249.05 million primary shares and an upsize option of up to 354.7 million secondary shares, which Maynilad Water Holding Company, Inc. (MWHCI).
At the final offer price of P15 per share, the offering could raise up to P34.3 billion in gross proceeds. The company said the proceeds from the primary tranche will be used for capital expenditure and general corporate purposes. It clarified that it would not receive proceeds from the sale of MWHCI shares if the upsize option is exercised.
The Maynilad IPO is poised to be the biggest listing in the country this year and the biggest in 2021, surpassing Monde Nissin Corp's P48.6 billion offering.
The offer period will run from October 23 to 29, with the shares expected to be listed on the main board of the Philippine Stock Exchange on November 7 under the ticker symbol MYNLD.
The listing comes at a time when the benchmark Philippine Stock Exchange Index (PSEI) is under pressure, which closed at 5,933.76 on Monday – its lowest level since April 7.
“Hopefully, the stock market will go up [with this IPO]” Mr. Francisco said.
BDO Capital is one of the domestic cornerstone investors in the offering.
Maynilad is majority owned by Metro Pacific Investments Corp., one of the three Philippine subsidiaries of First Pacific Co., Ltd. along with Philex Mining Corp. and PLDT Inc.
Hastings Holdings, Inc., a subsidiary of PLDT Beneficial Trust Fund MediaQuest Holdings, Inc. a unit of, is interested in businessworld Through the Philippine Star Group, which he controls. , Alexandria Grace C. Magno
