Megawide redeems P1.5-B preferred shares to cut funding costs

MEGAWIDE Construction Corp. has redeemed its maturing P1.5-billion preferred shares to improve its capital structure and reduce funding costs.

“We continue to improve our capital structure to bring down our cost of funding and generate cash savings. The redemption of Series 5 is a step in this direction as we plan to trim our preferred shares to a more comfortable level of around P4.0 billion in the medium term,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said in a media release on Monday.

In a separate regulatory filing, Megawide said its board approved on March 12 the redemption of its Series 5 preferred shares on April 17, three years after their listing in 2021.

The company said it has taken advantage of strong investor interest by actively participating in the capital markets over the years, resulting in P8.2 billion worth of preferred shares.

“Despite the ongoing war in the Middle East, we expect a strong performance this year — especially in the real estate and social infrastructure development space anchored on the government’s socialized housing program under the expanded 4PH,” he said.

For 2025, the company’s order book reached P50 billion, up 50% from 2024, driven mainly by residential project contracts.

The company said the order book represents about three to four years’ worth of revenue and serves as an indicator of its construction segment’s performance.

Megawide said residential projects accounted for 35% of the total order book, followed by office and commercial projects at 28%, expanded Pambansang Pabahay Para sa Pilipino (4PH) projects at 23%, and infrastructure at 15%.

The company said its order book will translate into construction-related revenues in the next two to three years.

“But we continue to be vigilant and agile to ensure that our growth prospects remain intact while keeping an eye on opportunities that may arise amid the crisis,” Mr. Saavedra said.

At the local bourse on Monday, shares in the company fell by three centavos, or 1.02%, to close at P2.92 each. — Ashley Erika O. Jose