Maynilad considers up to $1-billion IPO

MAYNILAD WATER Services, Inc. is considering an initial public offering (IPO) in Manila that could raise $750 million to $1 billion, according to people with knowledge of the matter.

The Philippine water and wastewater services provider could be valued at as much as $4 billion in the listing, said the people, who asked not to be identified as the information is private. Deliberations are ongoing and details such as the size of the offering could change, the people said.

Maynilad is evaluating proposals from financial advisers and is planning for a listing in 2025, its President Ramoncito S. Fernandez said in a text message in response to a query on Friday. Regarding the details of the IPO, he said it’s too early to tell.

At $1 billion, Maynilad’s IPO could be the biggest in the Philippines since 2021 when Monde Nissin Corp. raked in slightly over $1 billion in its listing, according to data compiled by Bloomberg. The water services firm’s offering could also give a boost to the first-time share sales in Manila, which hosted three deals and raised only $72 million so far this year, down from $352 million in the same period in 2022.

Maynilad provides water and wastewater services for 17 western cities in greater Manila. It operates about 7,491 kilometers worth of pipelines. If laid end-to-end from Manila, these pipes can reach the United Arab Emirates, according to the company’s website.

The Quezon City-based firm was founded in 1997 after the consortium of Benpres Holdings Corp. and Suez Lyonnaise de Eaux won the exclusive right to provide water and wastewater services in the area, the website shows. In the same year, Maynilad struggled to meet its services and financial obligations during the Asian financial crisis, leading to financial and legal disputes between the company and Metropolitan Waterworks and Sewerage System, which was previously in charge of these services.

In 2007, DMCI-MPIC Water Co., a joint venture between Metro Pacific Investments Corp. and DMCI Holdings, Inc. took control of Maynilad via a competitive bidding process, according to the website. Six years later, Japan’s Marubeni Corp. bought a 20% stake in DMCI-MPIC and became a strategic partner. — Bloomberg