Manila Water sets IPO for 2005

Ayala-led Manila Water Co. Inc. (Manila Water) plans to raise US$ 20m in the next few months, and another US$ 110m in the next three to five years to finance its expansion projects. The company is also scheduling an initial public offering (IPO) in 2005.

The US$ 20m will be raised through a syndicate of banks, with the Bank of the Philippine Islands (BPI) as its lead arranger and financial adviser. Other fund-raising activities will likely involve the International Finance Corp. (IFC), the private investment arm of the World Bank.

Manila Water has tapped $30.59m with the help of the IFC under a 15-year term, the longest the World Bank investment arm ever undertook in the Philippines.

The IPO is tentatively scheduled for 2005, or a year after the national elections, with the hope of raising US$ 35.6m to US$ 89m. BPI Capital Corp. and ING Barings will be tapped as financial advisers.

"It would be the best time for the company to make its IPO a year after the elections for a stable political and market environment," Manila Water President Antonino T. Aquino said.

Manila Water, the east zone water concessionaire for Metro Manila, earmarked US$ 53m to maintain existing water facilities and install a 50-km pipeline to connect more customers. From 2.8 million in 1997, Manila Water's customer base grew from 2.8 million in 1997 to 4.3 million in 2003.