IFC, ADB support to bolster confidence in Maynilad IPO

The planned investments of multilateral lending institutions, the International Finance Corp. (IFC) and the Asian Development Bank (ADB), in Maynilad Water Services Inc.'s upcoming initial public offering (IPO) are expected to give a significant boost to investor confidence in the company's maiden issuance.

- By RICHMOND MERCURIO

"Cornerstone investors do a lot to improve investor confidence, especially if they are reputable institutions like the IFC and ADB," AP Securities research head Alfred Benjamin Garcia said.

"Based on current exchange rates and assuming the IPO is priced at the top end, they should account for around a third of the demand. Hopefully, domestic institutions and retail investors will be able to fill in the rest so the IPO can push through," he said.

Based on Maynilad's latest prospectus, the IFC and the ADB are looking to invest up to $245 million in Maynilad as cornerstone investors for its upcoming P45.77 billion IPO.