Construction firm sets Q4 launch of P3-B share offering

Megawide Construction Corporation is preparing to raise P3 billion through a preferred share offering later this year, as it positions itself for a significant expansion in its order book and business operations.

At the company’s annual stockholders’ meeting, Chief Finance Officer Ramon H. Diaz said the offer will likely be launched in the fourth quarter of 2025 and will cover not only current funding needs but also those projected for 2026. As a result, Megawide does not anticipate returning to the capital markets next year.

The proceeds will be split between refinancing existing obligations and financing business development and corporate initiatives. “Covering these plans also includes 2026 requirements,” Diaz explained, emphasizing a one-time capital raise approach.

Chairman and CEO Edgar B. Saavedra revealed that Megawide’s current project backlog stands at P40 billion. However, the company is expecting to boost its order book to a record-high P48 billion by the end of 2025.

“We’re expecting P10 billion worth of projects to be awarded within the month, and another P10 billion in the next two months,” Saavedra said, noting that some P12 billion worth of ongoing work is already scheduled to be recognized as revenue this year.

Part of the anticipated growth could come from Megawide’s possible involvement in the government’s flagship Pambansang Pabahay Para sa Pilipino (4PH) housing program. Saavedra shared that the company had been approached to participate in the initiative, which aims to provide affordable housing to government workers and underserved sectors.

“We think this project can be viable,” Saavedra noted. “It can give a high order book to the construction and our precast production. We will participate and expect to do significant projects under this.”

The capital raise and project pipeline reflect Megawide’s strategy to reinforce its role in the Philippines' infrastructure development while managing its balance sheet more efficiently.