MANILA, Philippines — Just months after its blockbuster market debut, Maynilad Water Services Inc. is already making waves in the local stock market. A new joint study by First Metro Securities and DBS Bank suggests the water utility giant is a “strong candidate” for early inclusion in the Philippine Stock Exchange Index (PSEi) as soon as August.
Since its Initial Public Offering (IPO) in November 2025, Maynilad’s stock price has surged by approximately 47 percent. This rally has propelled the company to the 22nd spot in terms of full market capitalization—comfortably within the threshold required to join the elite 30-company index.
While Maynilad’s ascent is good news for its investors, it spells trouble for current index members. Because the PSEi is capped at 30 companies, Maynilad’s entry means someone else has to go.
Analysts have identified three companies currently “on the bubble” and at risk of being displaced:
- Converge ICT Solutions Inc.: Currently seen as the most vulnerable, ranking lowest in market capitalization among the group.
- ACEN Corp.: Facing a 30 percent probability of removal if its trading volume or price slips before the June cutoff.
- DigiPlus Interactive Corp.: Also in the danger zone, though currently maintaining a slight edge over Converge.
To qualify for “early inclusion,” a newly listed company must prove it isn’t just big, but also highly active. Maynilad has checked both boxes, ranking within the top 20 percent of the market in terms of median daily trade volume.
“The upcoming review is shaping up to be one of the tightest in recent cycles,” analysts noted, highlighting that the final decision will hinge on the share price movements of these four companies over the next two months.
Index inclusion is a major milestone. When a company joins the PSEi, institutional investors and “index funds”—which automatically track the top 30 stocks—are forced to buy the shares. This usually leads to increased demand and higher trading liquidity for the stock.
The official PSE rebalancing results are expected to be announced in August, following the June review period.
