Fundamentals, dividend, and growth plans drive Maynilad post-IPO outlook

A DEFENSIVE business model, undemanding valuations, planned expansions, and an upcoming dividend are expected to shape investor interest in Maynilad Water Services, Inc., analysts said, even as the stock closed slightly below its initial public offering (IPO) price on debut.

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“On a more long-term view, Maynilad should weather market downturns well due to the defensive nature of its business and its undemanding valuations,” AP Securities, Inc. Research Head Alfred Benjamin R. Garcia said in a Viber message on Friday last week.

“I’m sure the market is already anticipating its first dividend declaration around March next year” he added.

For her part, COL Financial Group, Inc. Chief Equity Strategist April Lynn Lee-Tan said: “Longer term, catalysts for strong performance include direction of interest rates (down), direction of profits (up).”

Luis A. Limlingan, head of sales at Regina Capital Development Corp. said that since the IPO price was set more than a week before the listing date and the gross domestic product (GDP) came in below consensus, having a flat performance on its first trading day is actually good.