Megawide readies property unit’s IPO

Megawide readies property unit’s IPO | Daily Tribune

Megawide Construction Corp. is planning to launch the initial public offering of its real estate development arm, PH1 World Developers Inc., by early next year.

Megawide chairperson and chief executive officer Edgar Saavedra told reporters on Wednesday that tapping the capital market will help support the company’s plan to position PH1WD as an industry leading player.

Ripe for IPO

“(An IPO for PH1WD) would be ripe by around 2025 or 2026. For our business model, we normally do joint ventures so that it is not heavy on capital. But when we do an IPO, things will change a bit because fundraising would be easy,” Saavedra said.

Megawide acquired PH1WD from Citicore Holdings Investment, Inc. last year for P5.2 billion.

As part of the company’s expansion roadmap, Saavedra said PH1WD will target to launch two new projects every year.

“Now, we have around five projects, and then, every year, we will launch two projects in vertical, high-rise, medium-rise. Also when we launch, our medium-rises are usually large with a minimum of around five to 10 towers,” Saavedra said.

“By 2026, we will have around eight to 10 but your order book is 10 years old. Your inventory we’re looking at P200 billion in 10 years. You have 200 billion to sell in the next 10 years,” he added

Property portfolio fortified

Last year, PH1WD fortified its diverse property portfolio by launching two substantial projects totaling P10.6 billion in the Greater Manila area.

These new projects are the Northscapes San Jose Del Monte, a horizontal housing development situated in Bulacan, and Modan Lofts Ortigas Hills, a high-rise development in Taytay, Rizal.

Megawide will take on design and construction responsibilities for both projects.

Northscapes San Jose Del Monte is a development comprising 337 units and holds an estimated sales value of P1.9 billion, marking PH1WD’s venture into the horizontal housing segment.

On the other hand, PH1WD’s Modan Lofts Ortigas Hills boasts an impressive estimated sales value of P8.7 billion. The high-rise development will feature 986 residential units spread across a substantial land area of approximately 16,500 square meters.