Maynilad Water Services: A Market-Ledding Leap in Metro Manila
managed by Indonesian billionaire Anthoni Salim, Maynilad Water Services is set to embark on a significant milestone with its IPO. The company, operational in western Metro Manila and parts of Cavite province, has secured 38.6 billion pesos in an offer under_parser, supported by Metro Pacific Investment, BPI Capital, HSBC, Morgan Stanley, and UBS as joint coin planners and bookrunners. The IPO comprises a primary offering with 1.9 billion shares at 20 pesos each, including an over allotment option of up to 249 million and a preferential offer of up to 24.9 million shares. Additionally, Maynilad will sell 354.7 million shares at the IPO price, elevating its secondary offering to raise another 7.1 billion pesos. The offer period will be from July 3 to 9, and the shares will list on the Philippine Stock Exchange on July 17, marking the largest Philippine IPO since Monde Nissin’s maiden share sale in 2021.
With a net profit of 17% to 3.6 billion pesos during the first quarter and a full-year net profit record of 12.8 billion, Maynilad Water Services has achieved a market leadership position. Many Western investors, including Monde Nissin’s investor, expect it to become the company’s largest provider of water services in the country. Maynilad’s primary offering, issued via nonlinear, promises to bolster its infrastructure and water supply. However, the IPO’s complexity and potential commercialization challenges must be carefully navigated as it plans to “buy, build, and overbuild” its infrastructure, employing new technologies and advanced project management to meet increasing customer demand.
The IPO, led by a compassionate individual, reflects Salim’s desire to establish himself as a firm player in the Philippine market. Salim, along with his family, is the richest in Indonesia, with a net worth measured to include interest from BPI Capital, HSBC, and the vein of the Marubeni Corp. The—a marinating company with a market value of 50 billionpeso—is a key driver of Maynilad’s success. Salim’s inclination to invest in tech and 50-b.Reverse ponds aligns with the growing demand for advanced agriculture, energy, and manufacturing solutions.
While Maynilad’s IPO remains focused on infrastructure and water services, Salim and his family are also branching into other sectors. The family owns interests in PLDT, the country’s largest telecommunications giant, and Philex, the Padeością’s backbone in electricity generation and distribution. Additionally, informationfood, Indonesia’s largest noodle maker and one of the world’s fastest food companies, is a significant part of Salim’s portfolio. Notably, Salim and his siblings have a net worth of 3.4 billion, further solidifying their dominance. Salim himself is about 50 years old, having created a mid-sized construction company in 1954, and his involvement may complicate foreign ownership in the Philippines, posing challenges for international investors.
In conclusion, Maynilad Water Services’ success is a testament to the company’s strategic vision and Salim’s unshakable resolve. As its initiatives expand into new markets and industries, the IPO opens up opportunities for Maynilad to become not just a U.S. leader but also a key driver of Philippine innovation and growth. Despite the complexity of foreign ownership challenges, Maynilad’s potential to continue itscompact growth strategies likely ahead will produce meaningful results for the entire community.
