Megawide expects P20B in new contracts

SAAVEDRA-LED infrastructure conglomerate Megawide Construction Corp. is expecting P20 billion worth of new contracts this year as the company looks to boost its project portfolio.

Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said the company’s current order book is worth P40 billion, with P20 billion worth of new contracts expected to be secured this year.

“We are expecting P10 billion worth of projects to be awarded probably within the month, and then another P10 billion in the next two months,” Mr. Saavedra said during Megawide’s annual stockholders meeting on Thursday.

Excluding revenues, Mr. Saavedra said Megawide’s order book is expected to reach around P50 billion by yearend.

Meanwhile, Megawide Chief Finance Officer Jez G. Dela Cruz said the company is looking to raise up to P3 billion via a preferred share issuance, with a target listing date in the fourth quarter.

This will be Megawide’s second fundraising activity this year, after securing P5.3 billion from a preferred share offering in April.

“About half of the proceeds will be used to refinance requirements of the company, and the balance will be allocated to fund business development initiatives as well as general corporate purposes,” he said.

“These plans also include the 2026 requirements, so Megawide will not be going back to the capital markets next year,” he added.

Meanwhile, Mr. Saavedra said Megawide is planning to undertake “significant projects” for the government’s Pambansang Pabahay Para sa Pilipino (4PH) national housing program.

“We think that this project can be viable. We will participate in these projects because we see the impact it can generate to the company by giving high order book to the construction and our precast production,” he said.

Megawide shares dropped by 1.02%, or two centavos, to P1.94 per share on Thursday. — Revin Mikhael D. Ochave