Megawide to raise P6-B from share issuance
Megawide Construction Corp. will raise up to P6 billion from an upcoming issuance of preferred shares as it beefs up its coffers for portfolio expansion.
In a stock exchange filing on Friday, the company led by tycoon Edgar Saavedra said the Securities and Exchange Commission had approved the decision of Megawide’s board to offer and sell up to 60 million Series 6 preferred shares at P100 apiece.
Megawide has yet to disclose further details, such as when the shares will be issued.
Saavedra, president and CEO of Megawide, earlier said they would earmark P1.8 billion in capital outlays this year.
Of that amount, half would go to their real estate venture under PH1 World Developers Inc. The other half will go to the group’s construction business, which has long been its main revenue driver.
Megawide’s major projects include several public-private partnerships like the Parañaque Integrated Terminal Exchange (PITX), Metro Manila Subway System and Malolos-Clark Railway.
As for real estate, Megawide wants to focus on building its portfolio in the affordable segment, or those priced at P2.5 million to P3.5 million.
This was where most of the housing backlog was, according to Saavedra.
PH1, which Megawide acquired from affiliate firm Citicore Holdings Investments Inc. in 2023, currently has horizontal residential developments in the provinces of Bulacan and Cavite.
In the first nine months of 2024, government-led infrastructure projects and renewable energy capacity expansion raised Megawide’s net income by 69 percent to P562 million.
Revenues rose by 7.2 percent to P16.3 billion, with the construction business doing most of the heavy lifting. The segment accounted for 96 percent of overall revenues at P15.5 billion.
During that period, Megawide bagged eight new contracts worth a total of P8.91 billion, six of which were the solar power projects of newly listed affiliate Citicore Renewable Energy Corp.
The manufacturing side, meanwhile, more than doubled its revenues to P2.8 billion on strong external sales of the precast and construction solutions segment.
Land port operations through PITX saw a 14-percent jump in revenues with P386 million.
