Maynilad Water Services’ PHP34 billion (USD590 million) initial public offering on the Philippine Stock Exchange (PSE) has set a record as the second largest listing in the country’s history.
Picazo Law, Latham & Watkins, Romulo and Milbank counselled parties involved in the IPO by Maynilad, which is the water and wastewater services provider for 17 cities and municipalities comprising the west zone of the Greater Metro Manila area.
Moises Ronette Colobong, one of three partners at Picazo Law serving as the Philippine issuer counsel to Maynilad, told Asia Business Law Journal that the IPO might serve as a model for listings of other public utilities, which were required to undertake a public offer or dispersal of ownership under their legislative franchise.
“In addition, being the first company to secure a Philippine Green Equity label under the aforementioned SEC (Securities & Exchange Commission) guidelines, it sets a precedent for other companies intending to secure a green equity label from the Philippine SEC,” added Colobong.
Colobong advised Maynilad along with founding partner and of counsel Alex Erlito Fider as well as partner Kristine Joyce Caro-Gangan on the Securities Regulation Code and the PSE Listing Rules, as well as compliance with the legislative franchise of Maynilad (Republic Act No. 11600), SEC Guidelines for Cornerstone Investors in Initial Public Offerings and SEC Guidelines on Philippine Green Equity.
Maynilad, which was also advised by international counsel Latham & Watkins’ team led by Hong Kong partner Benjamin Carale, was awarded the country’s first Philippine Green Equity label by the SEC ahead of its IPO, an affirmation of its continuing adherence to sustainability standards, the PSE said in a 6 October release announcing the exchange’s approval of the listing.
In September this year, the SEC issued Memorandum Circular No.13, Series of 2025, setting out guidelines on Philippine Green Equity, the country’s first regulatory framework for equity offerings aimed at financing environmentally sustainable projects. Criteria for a company to be awarded the green equity label include having more than 50% of revenue, as reported in the latest audited annual financial statements, deriving from green activities.
Yvette Chua, a partner at Romulo Law Firm’s project development and finance department, advised the joint global co-ordinators (JGCs) and joint bookrunners along with the firm’s senior partner and executive board member Agustin Montilla.
Chua and Montilla advised UBS, BPI Capital, HSBC and Morgan Stanley on all applicable rules and regulations regarding the IPO process, as well as handling the listing application.
“It (the IPO) is very significant, not just in terms of size but also the fact that this is the first green equity label,” said Chua.
Besides Romulo, international counsel Milbank acted for the JGCs and joint bookrunners, with a Hong Kong-based Milbank team led by corporate finance and securities partner James Grandolfo taking charge of the deal.
“The scale of the Maynilad IPO highlights renewed investor confidence and the enduring appeal of utility sector investments in the Philippine market,” said Grandolfo in a 13 November release by Milbank on its participation in the transaction.
Monde Nissin Corp, a manufacturer and distributor of prepared food products, is the Philippines’ largest IPO to date, raising about PHP48.6 billion (USD1 billion) in 2021.
