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#Happy Tuesday, Barkada --
#The PSE lost 11 points to 6455 ▼0.2%
Just another normal day, with the US getting downgraded by Moody's, Japan admitting that its economic crisis is "worse than Greece", and the 30Y US Treasury yield spiking above 5%.
Not sure what that means for our little tiny market, but we sure are about to find out.
#▌[In today's MB](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b):
- **DDMPR Q1 div down 1.8% y/y**
- Up 2.2% q/q
- Div was 108.3% of Q1 DI
- **Maynilad trims IPO to P45.8-B**
- Includes P500M "Reserve" for MPI parent
- Overallotment option plus "upsize" option
- Compliance IPOs don't get me amped
- **Two Villar firms still suspended**
- Rogue's Gallery of misfits
- SEC/PSE too willing to suspend
- Suspended companies too willing to get suspended
#▌[Daily meme](https://i.imgur.com/lFIjDJm.png) | [Subscribe (it's free)](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1&utm_source=mb) | [Today's email](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b)
#▌Main stories covered:
>- **[DIVS] DDMPR Q1 div down 1.8% y/y...** **DDMP** [DDMPR 1.06 ▲0.9%; 198% avgVol] [[link](https://edge.pse.com.ph/openDiscViewer.do?edge_no=5c0852bae825f892ec6e1601ccee8f59)] declared a Q1 dividend of ₱0.023054/share (-1.8% y/y, +2.2% q/q) on ₱379.5 million of distributable income (+4.9% y/y, +17.2% q/q). In total, DDMPR’s dividend was ₱411.0 million, which was 108.3% of its distributable income for the quarter.
> - ***MB:*** As I discussed on Monday, all of DDMPR’s organic metrics are headed in the wrong direction. Critically, DDMPR’s occupancy rate has reached an all-time low at just 69%, and its receivables continue to pile up. Sideways and down for DDMPR. Sideways and down. Any sign of life from this management team might be enough to attract some buying interest from fixed-income investors willing to take on a little extra risk for a little extra upside, but so far they’ve done little (if anything?) to slow the REIT’s degrading organic numbers (occupancy, WALE) and have literally done nothing to acquire new assets. They haven’t even done the basic diversification move of injecting mall/retail/hotel assets to reduce shareholder exposure to the commercial office space sector, with the side benefit of fuzzing occupancy and WALE. Just nothing. No debt, sure, but that’s not a good thing for a REIT. In my opinion, that’s a sign of failure.
>- **[NEWS] Maynilad trims IPO to ₱45.8 billion...** **Maynilad Water Services** [MYNLD 20.00 pre-SEC] [[link](https://www.mayniladwater.com.ph/wp-content/uploads/2025/05/MYNLD-Prospectus-May-14-2025-vF.pdf)] has filed IPO paperwork with the SEC to conduct an IPO offering between July 3 and July 9 of this year, with a tentative listing date on July 17. The offer is priced at ₱20.00/share, but will receive its “final” pricing on June 30. Under the terms of the preliminary prospectus, MYNLD has reduced the size of its IPO from ₱49 billion to ₱45.77 billion, split between a ₱33.7 billion primary firm offer, a ₱4.98 billion primary overallotment option, and a ₱7.09 billion secondary “upsize” option. Around ₱500 million of the primary IPO shares are considered “Reserve Shares”, and will be sold to **First Pacific Company Limited**, which owns a 40% interest in the company (**Enterprise Investment Holdings**) that holds a 60% interest in **Metro Pacific Investments** (MPI), which is the company that holds a ~58% voting interest in MYNLD. Assuming the full sale of the primary shares, 97% of the proceeds (₱36.4 billion) will go toward “required capital expenditure”, with the remaining 3% (~₱1.0 billion) going to “general corporate purposes”. According to the prospectus, MYNLD’s capex for FY25 is approximately ₱68.5 billion, so this transaction could help MYNLD fund up to 53% of this year’s expected capex spend.
> - ***MB:*** This is a compliance IPO, meaning that MYNLD is required by the terms of its franchise to publicly list at least 30% of its outstanding shares before January 2027. I’m not a huge fan of compliance IPOs because they’re usually not a very attractive growth opportunity, and they usually hit the market “heavy”, meaning that they struggle to achieve escape velocity from their listing price. I’m going to take a closer look at the prospectus to see if the potential dividend gives enough downside protection to make an IPO play worth a roll of the dice, but I’ll admit I’m starting this research from nothing.
>- **[UPDATE] Two Villar firms still suspended for reporting failures...** Two Villar-owned companies, **Golden MV Holdings** [HVN 2296.00 unch; 0% avgVol] and **Vistamalls** [STR 1.50 ▼2.0%; 0% avgVol], remain suspended for their failure to submit an Annual Report before the SEC’s deadline. They are joined by the other companies from the original batch of 15 that were suspended by the PSE, including: **I-Remit** [I 0.20 ▼9.6%; 0% avgVol], **Premiere Horizon Alliance** [PHA 0.21 ▼2.8%; 0% avgVol], **TKC Metals** [T 0.32 ▼4.5%; 0% avgVol], and **AgriNurture** [ANI 0.50 ▼3.9%; 0% avgVol]. The suspensions will remain in place until Annual Reports are submitted. Any company that is still suspended after three months must be delisted by the PSE.
> - ***MB:*** I’m not saying that HVN and STR are badly-run companies, or that they’re as shady as PHA and ANI, or as useless as I and T. What I am saying is, from a vibes perspective, it’s not weird to see some Villar companies in a rogues gallery like that given the family’s history with fleecing their public floats. (Queue **John Tuld**’s intense quote: “We are selling to willing buyers at the current fair market price!”) I’ve mentioned this before, but I consider suspension to be something of an extraordinary punishment. In my opinion, the rules are too horny to suspend companies for failures that are actually management issues, since the punishment (suspension) tends to disadvantage the public float more than it does the company’s management team or ownership group. But just because the rules are written the way that they are doesn’t excuse a company from allowing its shares to become suspended. Every company that gets suspended has a list of reasons/excuses for why it happened, but at the end of the day, I use a company’s relative comfort with allowing itself to become suspended (and stay suspended) as a “red line” signal that I never cross. I will not invest in any of these companies. When they get suspended, they tell us who they are, and I try to listen.
**MB** is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the [newsletter](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1&utm_source=mb), or follow me on [Twitter](https://twitter.com/MerkadoBarkada). You can also read my daily Morning Halo-halo content on [Philstar.com](https://www.philstar.com) in the [Stock Commentary](https://www.philstar.com/business/stock-commentary) section.
#Subscribe [here](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1)
#Read today's full newsletter [here](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b)

#Happy Tuesday, Barkada --
#The PSE lost 11 points to 6455 ▼0.2%
Just another normal day, with the US getting downgraded by Moody's, Japan admitting that its economic crisis is "worse than Greece", and the 30Y US Treasury yield spiking above 5%.
Not sure what that means for our little tiny market, but we sure are about to find out.
#▌[In today's MB](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b):
- **DDMPR Q1 div down 1.8% y/y**
- Up 2.2% q/q
- Div was 108.3% of Q1 DI
- **Maynilad trims IPO to P45.8-B**
- Includes P500M "Reserve" for MPI parent
- Overallotment option plus "upsize" option
- Compliance IPOs don't get me amped
- **Two Villar firms still suspended**
- Rogue's Gallery of misfits
- SEC/PSE too willing to suspend
- Suspended companies too willing to get suspended
#▌[Daily meme](https://i.imgur.com/lFIjDJm.png) | [Subscribe (it's free)](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1&utm_source=mb) | [Today's email](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b)
#▌Main stories covered:
>- **[DIVS] DDMPR Q1 div down 1.8% y/y...** **DDMP** [DDMPR 1.06 ▲0.9%; 198% avgVol] [[link](https://edge.pse.com.ph/openDiscViewer.do?edge_no=5c0852bae825f892ec6e1601ccee8f59)] declared a Q1 dividend of ₱0.023054/share (-1.8% y/y, +2.2% q/q) on ₱379.5 million of distributable income (+4.9% y/y, +17.2% q/q). In total, DDMPR’s dividend was ₱411.0 million, which was 108.3% of its distributable income for the quarter.
> - ***MB:*** As I discussed on Monday, all of DDMPR’s organic metrics are headed in the wrong direction. Critically, DDMPR’s occupancy rate has reached an all-time low at just 69%, and its receivables continue to pile up. Sideways and down for DDMPR. Sideways and down. Any sign of life from this management team might be enough to attract some buying interest from fixed-income investors willing to take on a little extra risk for a little extra upside, but so far they’ve done little (if anything?) to slow the REIT’s degrading organic numbers (occupancy, WALE) and have literally done nothing to acquire new assets. They haven’t even done the basic diversification move of injecting mall/retail/hotel assets to reduce shareholder exposure to the commercial office space sector, with the side benefit of fuzzing occupancy and WALE. Just nothing. No debt, sure, but that’s not a good thing for a REIT. In my opinion, that’s a sign of failure.
>- **[NEWS] Maynilad trims IPO to ₱45.8 billion...** **Maynilad Water Services** [MYNLD 20.00 pre-SEC] [[link](https://www.mayniladwater.com.ph/wp-content/uploads/2025/05/MYNLD-Prospectus-May-14-2025-vF.pdf)] has filed IPO paperwork with the SEC to conduct an IPO offering between July 3 and July 9 of this year, with a tentative listing date on July 17. The offer is priced at ₱20.00/share, but will receive its “final” pricing on June 30. Under the terms of the preliminary prospectus, MYNLD has reduced the size of its IPO from ₱49 billion to ₱45.77 billion, split between a ₱33.7 billion primary firm offer, a ₱4.98 billion primary overallotment option, and a ₱7.09 billion secondary “upsize” option. Around ₱500 million of the primary IPO shares are considered “Reserve Shares”, and will be sold to **First Pacific Company Limited**, which owns a 40% interest in the company (**Enterprise Investment Holdings**) that holds a 60% interest in **Metro Pacific Investments** (MPI), which is the company that holds a ~58% voting interest in MYNLD. Assuming the full sale of the primary shares, 97% of the proceeds (₱36.4 billion) will go toward “required capital expenditure”, with the remaining 3% (~₱1.0 billion) going to “general corporate purposes”. According to the prospectus, MYNLD’s capex for FY25 is approximately ₱68.5 billion, so this transaction could help MYNLD fund up to 53% of this year’s expected capex spend.
> - ***MB:*** This is a compliance IPO, meaning that MYNLD is required by the terms of its franchise to publicly list at least 30% of its outstanding shares before January 2027. I’m not a huge fan of compliance IPOs because they’re usually not a very attractive growth opportunity, and they usually hit the market “heavy”, meaning that they struggle to achieve escape velocity from their listing price. I’m going to take a closer look at the prospectus to see if the potential dividend gives enough downside protection to make an IPO play worth a roll of the dice, but I’ll admit I’m starting this research from nothing.
>- **[UPDATE] Two Villar firms still suspended for reporting failures...** Two Villar-owned companies, **Golden MV Holdings** [HVN 2296.00 unch; 0% avgVol] and **Vistamalls** [STR 1.50 ▼2.0%; 0% avgVol], remain suspended for their failure to submit an Annual Report before the SEC’s deadline. They are joined by the other companies from the original batch of 15 that were suspended by the PSE, including: **I-Remit** [I 0.20 ▼9.6%; 0% avgVol], **Premiere Horizon Alliance** [PHA 0.21 ▼2.8%; 0% avgVol], **TKC Metals** [T 0.32 ▼4.5%; 0% avgVol], and **AgriNurture** [ANI 0.50 ▼3.9%; 0% avgVol]. The suspensions will remain in place until Annual Reports are submitted. Any company that is still suspended after three months must be delisted by the PSE.
> - ***MB:*** I’m not saying that HVN and STR are badly-run companies, or that they’re as shady as PHA and ANI, or as useless as I and T. What I am saying is, from a vibes perspective, it’s not weird to see some Villar companies in a rogues gallery like that given the family’s history with fleecing their public floats. (Queue **John Tuld**’s intense quote: “We are selling to willing buyers at the current fair market price!”) I’ve mentioned this before, but I consider suspension to be something of an extraordinary punishment. In my opinion, the rules are too horny to suspend companies for failures that are actually management issues, since the punishment (suspension) tends to disadvantage the public float more than it does the company’s management team or ownership group. But just because the rules are written the way that they are doesn’t excuse a company from allowing its shares to become suspended. Every company that gets suspended has a list of reasons/excuses for why it happened, but at the end of the day, I use a company’s relative comfort with allowing itself to become suspended (and stay suspended) as a “red line” signal that I never cross. I will not invest in any of these companies. When they get suspended, they tell us who they are, and I try to listen.
**MB** is written and distributed every trading day. The newsletter is 100% free and I never upsell you to some "iNnEr cIrClE" of paid-membership perks. Everyone gets the same! Join the barkada by signing up for the [newsletter](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1&utm_source=mb), or follow me on [Twitter](https://twitter.com/MerkadoBarkada). You can also read my daily Morning Halo-halo content on [Philstar.com](https://www.philstar.com) in the [Stock Commentary](https://www.philstar.com/business/stock-commentary) section.
#Subscribe [here](https://mailchimp.us12.list-manage.com/subscribe?u=925d69480ecfc297864a79dc6&id=17742706f1)
#Read today's full newsletter [here](https://mailchi.mp/merkadobarkada/maynilads-potential-ipo-shrinks-to-p458-b)