SEC okays Megaworld’s $100-M share sale

The Securities and Exchange Commission (SEC) has approved the registration of shares of upscale property developer Megaworld Corp., paving the way for the company’s share offer estimated to generate over $100 million.

Based on its registration statement filed with the SEC, Megaworld will offer a total of 3.92 billion primary and secondary shares at a price to be determined through a book-building process.

The SEC also approved the registration of an additional 633,474,968 shares to cover any over-allotment of shares for the company’s international offering.

Megaworld said 95 percent of the total shares to be offered will be sold overseas and the balance of five percent will be sold within the Philippines.

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

Proceeds from the offering will be used to partly finance Megaworld’s capital and project expenditures up to 2007.

The offering is also aimed at expanding Megaworld’s shareholder base and free float and raising funds for its ongoing residential and office development projects.

Around P2.5 billion of the proceeds will be used for the construction of Mckinley Hill Cyberpark and Mckinley Hill Town Center and another P2 billion for the 1800 and 1880 Eastwood offices and Eastwood Mall.

Megaworld reported a 43-percent growth in net profit last year to P1.15 billion, driven by higher sales from its residential projects and rental revenues. Revenues grew 19.3 percent to P5.32 billion.

Rental income likewise increased 20.5 percent to P547.82 million from 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.