Maynilad Water Services Inc. reported that feedback from preliminary investor meetings has been encouraging for its planned initial public offering, valued at up to ₱45.8 billion.

In a letter to the Philippine Dealing & Exchange Corporation, Maynilad Corporate Information Officer Lourdes Marivic K. Punzalan-Espiritu stated that the company has held preliminary investor meetings as part of its standard and customary market engagement.

However, she noted that “no pricing feedback has been sought or obtained” and that “the formal price discovery process has not commenced.”

“Maynilad has not yet entered the book-building phase; accordingly, there is no basis for assessing investor demand or determining price ranges at this stage,” Espiritu said.

It was reported earlier this week that stock analysts have heard that Maynilad may lower its offer price range to between ₱12.00 and ₱14.00 per share, down from its initially indicated maximum offer price of ₱20 per share, based on investor interest.

However, Abacus Securities Corporation said it believes there is sufficient demand for Maynilad’s IPO shares at ₱14 per share since the projected dividend yield of 6.5 percent at such level would be higher than those of other large-cap stocks listed in the Philippine Stock Exchange.

Another stock analyst pointed out that, while there is no official announcement on the price yet, “among us analysts, I would say consensus is around ₱12.00 to ₱14.00 per share.”

“I prefer a lower price (to ₱20 per share). It offers a discount to investors, pricing uncertainty despite (Maynilad’s) business being cyclical as a utility,” said Jonathan Ravelas, senior adviser at Reyes Tacandong & Co.

Rizal Commercial Banking Corporation Chief Economist Michael L. Ricafort pointed out that, the issuer is expected to seek the highest price possible to maximize funds raised through the stock market although this also depends on market conditions and investors’ appetite.

“It is so important to have favorable timing especially during times of improved market sentiment. It is a delicate balancing act on the time when funding is needed and also to meet the deadline for listing and fund-raising,” he added.

Based on the prospectus, the final offering price will be announced on June 30, 2025 while the offer period is tentatively set to run from July 3 to July 9, 2025 while listing date is targeted for July 17, 2025.

Based on its preliminary prospectus, Maynilad is offering a total of 2.29 billion shares consisiting of a primary offer of 1.66 billion new common shares, a preferential offer to First Pacific Company of 24.9 million new shares, an upsize option of 354.7 million secondary shares of shares owned by exisiting shareholders, and an overallotment option of up to 249.05 million shares.

Proceeds from the offering of new shares will be used to fund Maynilad’s capital expenditure program for 2025-2026 which consists of three major pillars: water capex, wastewater capex, and customer service and information system projects capex. A portion of the proceeds may also be allocated for general corporate purposes.