Maynilad kicks off strong market run

West Zone concessionaire Maynilad Water Services Inc. successfully debuted on the Philippine Stock Exchange after its P34.33 billion initial public offering (IPO) was heavily favored by investors, ending 2.7 times oversubscribed.

- By JAMES A. LOYOLA

In a briefing before the listing, Maynilad Chief Finance Officer Ricardo F. de los Reyes said cornerstone investors took 61.1 percent of the 2.29 billion IPO shares, which included the upsize and overallotment options.

Asian investors accounted for 53.6 percent of the IPO allocation, followed by local investors at 29.6 percent, European investors at 14.7 percent, and United States (US) investors at one percent.

Maynilad’s stock opened at P15, matching its IPO price. Trading data from the PSE showed the stock closed slightly lower at P14.98, a 0.13 percent decline for the day.

Maynilad President and Chief Executive Officer Ramoncito S. Fernandez stated the company pushed ahead with the IPO despite challenging market conditions.

"Aside from fulfilling the requirements of the legislative franchise, we believe Maynilad has strong fundamentals. And we deliver essential services and we have predictable cash flows," Fernandez said.