Megawide begins bookbuilding for P2.29-B IPO this month
MANILA, Philippines - Megawide Construction Corp. started yesterday its bookbuilding program for a planned P2.29-billion initial public offering (IPO) this month.
The Philippine Stock Exchange approved last Wednesday the company’s offering of up to 292 million primary common shares for as much as P7.84 a share.
The offer price will be finalized by Feb. 3, with the IPO scheduled from Feb. 7 to 11. Listing of the shares has been set on Feb. 18.
Megawide, a major contractor of SM Development Corp., the residential development arm of the SM Group, is the first company to list on the bourse this year. Once listed, it is expected to have a market capitalization of up to P6.72 billion.
BDO Capital & Investment Corp. is Megawide’s issue manager and lead underwriter.
Megawide intends to use proceeds from the offering to build a P1-billion world-class pre-cast concrete manufacturing plant in Taytay, Rizal as well as invest in new equipment such as the automatic climbing system (ACS), which can cut production time by 20 percent and boost capacity by 35 percent.
For this year, Megawide has programmed P2.02 billion in capital expenditures, more than double 2010’s budget of P800 million as it hopes to capitalize on a resurgent property market.
Aside from the SM Group, Megawide is also a contractor of Belle Corp., Antel Group, Suyen Corp. (owner of Bench), Prince Jun Development Group, Bellevue Hotel Group, Keppelland Realty, Malate Bayview Development Group, Goldland Properties and Dynamic Realty.
Megawide’s construction contracts are currently valued at over P20.66 billion, covering 26 condominium and office buildings.
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