Manila: Officials of Maynilad Water Services, Inc. (Maynilad) announced that the PHP34.3-billion proceeds from the company's initial public offering (IPO) will support their long-term expansion initiatives. The announcement came during a briefing prior to the bell ringing ceremony at the Philippine Stock Exchange (PSE).

According to Philippines News Agency, Maynilad's president and chief executive officer, Ramoncito Fernandez, stated that the IPO represents a fulfillment of their legislative franchise. Maynilad, a concessionaire of the government-owned Metropolitan Waterworks and Sewerage System (MWSS), provides services to the West Zone of the National Capital Region (NCR) and certain areas in the province of Cavite.

The company issued 1.66 billion primary common shares to the public and over 24.90 million primary common shares to First Pacific Company Limited as part of the IPO. The shares were priced at PHP15 each, which is lower than the initial PHP20 per share offering. Fernandez emphasized that the PHP15 was determined to be appropriate, providing flexibility over price discovery.

The allocation of shares saw a significant portion, approximately 53.6 percent, being acquired by investors from Asia, followed by 29.6 percent from local investors, 14.7 percent from Europe, and 1 percent from the U.S. The IPO attracted 12 cornerstone investors, including prominent entities such as the International Finance Corp. (IFC) and the Manila-based Asian Development Bank (ADB).

Fernandez noted that the involvement of ADB and IFC lent credibility and generated strong public interest in the offering, further positioning Maynilad as a viable vehicle for implementing development and sustainability plans in Asia and the Philippines.