MANILA, Philippines – Engineering and construction firm Megawide Construction Corp. is wooing global investors as it beefs up its war chest to prepare to bid for the government’s airport and other big-ticket projects.
Megawide CEO Michael Cosiquien and CFO Oliver Tan have just concluded the company’s first ever US roadshow, hosted by institutional equities broker Decker & Co.
The meeting with global investment funds is part of the firm’s continued exploration of capital sources to fund an aggressive growth strategy that includes high-profile public-private partnership (PPP) projects.
Cosiquien and Tan told investors that the company was in the process of preparing bids for major construction projects, including governmental airport projects.
The non-deal roadshow reflects global investors’ interest in the company and its growth. It came on the heels of Megawide’s announcement last month that it was considering the sale of treasury shares to raise an estimated P6 billion.
Mark Decker, founder and CEO of Decker & Co., said investors are excited about Megawide’s airport business.
“Investors are very excited about their emerging airport operating business which brings tourism and consumer themes into the investment equation along with infrastructure. Investors are attracted to the multiple growth drivers. We were pleased to bring Megawide’s dynamic leadership to the US for the first time,” said Decker, which has offices in Asia and the US.
Depending on market conditions, Megawide may embark on the share sale this year. It is also looking at other available options such as undertaking a private placement to raise funds.
Last July, Megawide bought back the 410 million shares – equivalent to 18 percent of the company’s total issued and outstanding shares – from the Sy family’s Sybase.
Megawide is among five groups that have been pre qualified to bid for the government’s five regional airport projects.
The other groups are the Filinvest-JATCO-Sojitz consortium, Maya consortium (Aboitiz Equity Ventures and VINCI Airports), Philippine Airports Consortium (Metro Pacific Investments Corp., Aeroports de Paris Management S.A. and TAV Havalimanlari Holdings A.S.), and SMHC (San Miguel Holdings Corp.) – IIAC (Incheon International Airport Corp.) consortium.
The regional airports include the P20.26 billion Bacolod-Silay Aiport, P30.40 billion Iloilo Airport, P40.57 billion Davao Airport, P14.62 billion Laguindingan Airport, and the P2.34 billion New Bohol Airport.
The winning bidder will be responsible for the operations and maintenance of the airports for 30 years, and expanding the facilities.
Megawide is banking on its newly gained expertise in the airport business as the 25-year concessionaire of the country’s the second largest airport in the Philippines, Mactan Cebu International Airport (MCIA).