Megawide doubles capital to cover 30% stock dividend

Manila, Philippines - Megawide Construction Corp. is doubling its authorized capital to P2 billion to cover its 30 percent stock dividend declaration.

In a disclosure to the Philippine Stock Exchange, Megawide said the new capitalization consists of two billion shares with a par value of P1.

The 30 percent stock dividend, equivalent to 257.1 million common shares, will constitute the minimum subscription and paid-up requirement to the increase of the authorized capital of Megawide.

The record date and date of payment shall be announced upon stockholders’ and/or regulator’s approval of the increase in capital.

Megawide reported a net income of P335 million last year, more than three times the 2009 level, on robust order books at its construction and support-services divisions.

The company is confident it will perform better this year on the back of a progressively increasing order backlog.

Megawide expects to secure more new projects this year as it seeks to diversify into infrastructure and residential construction.

The company is seeking joint ventures with big firms seeking to undertake infrastructure projects under the government’s Public-Private Partnership (PPP) program aimed at upgrading the country’s roads, bridges and airports.

Megawide, which is 20 percent owned by retail tycoon Henry Sy, recently raised P2.3 billion from its initial public offering of 292 million shares or 34 percent of its issued and outstanding shares.

Proceeds from the offering will be used to build a P1-billion concrete manufacturing plant, in Taytay, Rizal; acquire new machineries and equipment; and finance general working capital requirements.

Targeted for completion in 2013, the Taytay plant will be the country’s biggest one-stop-shop pre-cast concrete facility that will serve the undertapped low to mid-rise housing market.

Over the past three years, Megawide had booked P22.9 billion worth of construction contracts covering approximately 1.298 million square meters of floor area, consisting of 22 high-rise and 15 medium-rise condominium projects in Metro Manila.

The company’s client base covers large established companies such as the SM Group, Antel Group, Bench Group, Prince Jun Development Group, Bellevue Hotel Group, Belle Corp., Malate Bayview Group, Goldland Properties and Dynamic Realty, among others.