SEC OKs Megawide’s P3-B share offer

Megawide Construction Corp. has moved closer to raising nearly P3 billion from its upcoming preferred share offer after securing regulatory approval. This would enable the firm to beef up its coffers as it expands its real estate unit.

In a statement over the weekend, the Securities and Exchange Commission (SEC) said the commission en banc had given its go signal for Megawide’s offer of up to 20 million preferred shares. There is an oversubscription option of up to 10 million shares.

These will be offered to the public at P100 each, the SEC said.

Holders of preferred shares are prioritized during dividend payouts, although they are not given voting rights.

Should the overallotment option be fully exercised in case of high demand, Megawide could raise as much as P2.97 billion.

According to the SEC, proceeds will be used to repay Megawide’s existing debt, partially fund upcoming projects and general corporate purposes.

The offer period will run from Oct. 30 to Nov. 10. The shares will be listed on the main board of the Philippine Stock Exchange on Nov. 19.

PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp. will serve as the joint issue managers, joint lead underwriters and joint bookrunners for the offer.

This represents Megawide’s second follow-on offer this year after raising P5.3 billion in April.

The company recently raised its dividend allocation ceiling to 50 percent of its net income for the previous year. This increased from 30 percent amid expectations of its profit tripling by 2027.

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Analysts pointed out that this signaled more preferred share offerings from Megawide. The company now has more leeway to cover cash dividends.

In the first semester of 2025, the net income of Megawide was flat at P436 million. This was mostly because of less activity in its construction segment.

Still, Megawide chair and CEO Edgar Saavedra said they were on track to outpace their 2024 net income. The real estate business under PH1 World Developers Inc. gaining momentum.

Real estate revenues more than tripled to P1.1 billion thanks to gains from ongoing projects. These include My Enso Lofts, The Hive, Northscapes, Modan Lofts, One Lancaster Park and Lykke Condo.

Megawide is expecting its foray into the property sector to gain ground, specifically through its participation in the government Pambansang Pabahay Para sa Pilipino housing program.