Maharlika looking to invest in IPOs

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December 3, 2025 | 12:00am

MANILA, Philippines — Maharlika Investment Corp. (MIC) is weighing a potential investment in the equities market, a move that could inject fresh energy and renewed confidence into what has been the world’s worst-performing stock exchange.

“We’ve looked at some IPOs (initial public offerings),” MIC vice president for investments Kheed Ng said in a chance interview yesterday, noting that the management has been “busy talking to all investors.”

However, obtaining the thorough due diligence required for informed investment decisions has proven challenging for the sovereign wealth fund manager, he said.

IPO refers to the process of offering shares of a private company to the public for the first time and having them traded in the stock market. This allows companies to raise fresh funds for expansion.

So far this year, the Philippine Stock Exchange (PSE) has welcomed two IPOs: Top Line Business Development Corp.’s P732.6-million offering in April and Maynilad Water Services Inc.’s P34.3-billion listing last month.

The benchmark PSE index, currently trading below 6,000, plunged to the 5,600 mark last month, marking its worst finish in five years.

“The move could help reinvigorate our IPO market. Given its limited capital, Maharlika should explore ways to magnify the effect of its participation in the stock market,” investment banker Juan Paolo Colet told The STAR.

“It’s important to be very selective when it comes to their IPO investments, such as ensuring the investee companies have sound prospects, good governance and a business model aligned with the country’s development priorities,” Colet said when sought for insights.

According to Ng, they would ensure that any potential stock market investment aligns fully with their mandate before moving forward.

“We’re not just buying and selling out of the stock market. It needs to line up with our principles of being a long-term investor, plus making the impact,” the MIC official said.

MIC made its first investment in January through the acquisition of a 20-percent stake in Synergy Grid and Development Philippines Inc. (SGP), the listed company behind power transmission operator National Grid Corp. of the Philippines (NGCP).

The P19.7-billion deal, subject to closing conditions, grants the government four board seats – two each at SGP and the NGCP.

In addition, MIC has also signed a binding term sheet with Makilala Mining Co. Inc., the Philippine subsidiary of Celsius Resources Ltd., for a bridge loan facility of up to $76.4 million.

Over the next six months, Ng hinted that the country’s sovereign wealth fund is poised to roll out a wave of “significant” new investments.

These include investments in climate, digital infrastructure, health care and agriculture, he said.

“We are very mindful because this is public funds that we are investing in. Before we make an investment, we make sure that it will hit our investment target,” MIC chief legal officer and general counsel Paul Salanga said.