Megaworld to issue 4.22-billion common shares to international investors

High-end property developer Megaworld Corp. will issue as much 4.22-billion common shares to international and institutional investors to expand its stockholders’ base and free float and raise funds for its ongoing residential and office development projects.

A company official said P3.9 billion of the expected proceeds will go to the construction of Mckinley Hill Cyberpark and Mckinley Hill Town Center (P2.5 billion) and the 1800 Eastwood offices and Eastwood Mall (P1.4 billion).

UBS Investment Bank has been appointed as sole international underwriter and book runner while BDO Capital & Investment Corp. will serve as the lead domestic underwriter.

The official said the offer price for the shares is still being reviewed.

Of the 4,22 billion shares, 4.01 billion will be offered in the international market while the remaining 211.16 million shares will be sold to local investors.

Mckinley Hill is a township located on a 50 hectare property in Fort Bonifacio. It is being designed to include the Mckinley Cyberpark which will be a PEZA-designated information technology special economic zone, a low density residential subdivision for single-detached homes, low-rise residential garden villas, a leisure and entertainment area and an institutional area which is expected to include an embassy and educational institutions, including two international schools.

Megaworld posted a net profit of P1.15 billion last year, up 43 percent from the previous year mainly due to higher sales from its residential projects and rental revenues. Revenues grew 19.3 percent to P5.32 billion.

Rental income likewise increased by 20.5 percent to P547.82 million from only P454.65 million in 2004.

Eastwood City, Megaworld’s flagship project, accounted for bulk of the rental earnings, with its Cyber One office building and City Walk 2 leisure strip posting strong occupancy levels last year.

Eastwood City is a 16-hectare cyberpar. It is host to nearly one in every four business process outsourcing firms in the country like the call center operations of IBM and Citibank N.A.

Megaworld is expected to sustain its gains this year, mainly coming from residential projects Fort Bonifacio-Bellagio, Forbeswood Parklane and McKinley Hill Village, and The Residential Resort at Newport City at Villamor Air Base in Pasay City.