Megaworld plans to issue P10 billion worth of shares to existing investors

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MEGAWORLD Corp. will be issuing P10.376 billion worth of shares to existing investors, it told the stock exchange Tuesday.

The listed property developer said its board of directors has approved the subscription to 1.82 billion unissued shares of the company by some holders of its $200-million senior perpetual securities issued in April 2018.

The shares will be priced at P5.70 per share, effective once the listing of the subscription shares in the stock exchange has been approved.

Megaworld’s $200-million senior perpetual notes carry an annual yield of 5.375%, and marked the company’s return to the offshore bond market since 2013. The bonds are listed on the Singapore Exchange Securities Trading Ltd.

Megaworld’s net income attributable to the parent grew 15% to P4.5 billion in the second quarter of 2019, as revenues also rose 20% to P16.8 billion.

This pushed attributable profit 16% higher to P8.3 billion for the first half, while revenues were also up by 18% to P31.7 billion.

Megaworld has committed to spend P300 billion over the next five years to expand its residential, office, retail, and hotel projects. This year alone, it will spend P65 billion for expansion.

Shares in Megaworld fell 5.26% or 30 centavos to close at P5.40 each at the stock exchange on Tuesday. — Arra B. Francia