Philippine Water Utility, Backed by Billionaire Anthoni Salim, Plans to Raise Up to $858 Million through Initial Public Offering (IPO)
Going Public: Maynilad Water Services Inc.'s Imminent Offering
Get ready for a splash in the stock market! Maynilad Water Services Inc., backed by tycoon Anthoni Salim's Hong Kong-based First Pacific through Metro Pacific Investments, is gearing up for a major move. They're planning a share sale worth 49.1 billion pesos ($858 million) as early as this year, according to a recent filing[1].
In a regulatory filing, it was announced that Maynilad Water has submitted an application to sell up to 2.5 billion new and existing shares, representing 30.5% of its expanded outstanding stocks, at up to 20 pesos each. The sweet spot, as mentioned by Ramoncito Fernandez, President of Maynilad Water, is to close the deal this year, considering the Philippine law mandates listing by 2027 for the company[1].
Maynilad Water, which supplies water to half of Metro Manila, could potentially trigger a wave of IPOs on the Philippine Stock Exchange. It's been a while since we've seen new contenders in the bourse since mid-2024. Since June 2022 through June 2024, the exchange has approved nine new listings, raising a combined 23.8 billion pesos, according to their website[1].
Proceeds from the sale will primarily fund Maynilad Water's CAPEX program for 2025 and 2026. But what's a CAPEX program, you ask? Well, it's more than just fancy acronyms. It's a multi-faceted investment strategy focusing on three key areas:
- Water Infrastructure: Enhancing the supply and distribution capabilities.
- Wastewater Treatment: Improving wastewater management systems.
- Customer Service & Information Technology: Upgrading customer service systems and technology infrastructure.
With an IPO application recently filed, the company is one step closer to its listing on the PSE, currently anticipated for July 10, 2025[1]. Beyond Maynilad Water, Metro Pacific Investments' diverse portfolio includes hospitals, tollroads, dairy and vegetable farms, power distribution, electric generation, and more[4].
Maynilad Water is 94.4% owned by Maynilad Water Holdings, a joint venture between Metro Pacific Investments, Isidro Consunji-led DMCI Holdings, and Japan's Marubeni Corp. The utility's profit after tax more than doubled to $150.1 million in 2023 from $68.6 million in 2022, according to First Pacific[4]. With a net asset value of $1.14 billion at end-2023, Maynilad Water is ready to make a big splash in the market[4]. Apart from Maynilad Water, the Salim dynasty's empire spans telecom, banking, retail, coal mining, and more[4].
- Maynilad Water, part of the Salim dynasty's expansive business conglomerate, is planning to sell shares worth 49.1 billion pesos to fund its Capital Expenditure (CAPEX) program for 2025 and 2026.
- The proceeds from Maynilad Water's share sale will be allocated towards improving water infrastructure, wastewater treatment, and upgrading customer service systems and technology infrastructure.
- With the application for an Initial Public Offering (IPO) already filed, Maynilad Water, which is owned majority by Isidro Consunji-led DMCI Holdings, Metro Pacific Investments, and Japan's Marubeni Corp, is set to list on the Philippine Stock Exchange in July 2025.
