Megawide to list PH1 World

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Megawide Construction Corp. looks at listing its real estate arm, PH1 World Developers Inc., in three years.

Edgar Saavedra, Megawide chairman, said the realty arm is expected to be a bigger company than the group’s core business of construction.

In terms of earnings before interest, taxes, depreciation and amortization, PH1 could grow to as much as P3 billion in two years and to P4 billion to P5 billion by 2026, according to Saavedra.

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Megawide, in comparison, is just between P2 billion and P3 billion, he said.

“Our business model today is normally we do JV (joint venture) so it won’t be too heavy on capital. But when we do our IPO (initial public offering), it will change because fundraising is easier,” Saavedra said.

PH1 has five projects and targets to launch two projects every year on vertical, high-rise or medium rise.

“When we launch, our medium-rise construction (projects) are big, minimum of five to 10 towers,” he said.

“By 2026, we already have eight to 10 (projects) and order book is at already 10 years. The inventory, we’re looking at P200 billion in 10 years. (We) haveP 200 billion to sell in the next 10 years,” Saavedra said.

Megawide acquired PH1 from its parent Citicore Holdings Investments Inc. for P5.2 billion last year.

 

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