The Securities and Exchange Commission has given the green light for Andrew Tan’s Megaworld Corp. to proceed with its planned capital increase from P30 billion to P40 billion.
Megaworld Corp. said in a disclosure to the Philippine Stock Exchange that the SEC has approved the P10-billion increase in its authorized capital stock. Specifically, the listed property developer’s capital will increase to P40.2 billion from P30.2 billion.
In May, to boost its capital base to support its expansion program, Megaworld sought board approval to do the capital increase, consisting of 10 billion shares with par value of P1 a share. This was eventually approved by its board.
Of the 10 billion shares, 2.5 billion shares will be subscribed by its parent firm Alliance Global Group Inc. (AGI) at P4.29 a share.
“AGI sees Megaworld stock as undervalued and remains confident that the real estate market will continue to expand due to strong demand fuelled by a robust Philippine economy,” AGI said in a previous report.
Megaworld posted an increase of 15 percent in its nine-month net income, which was supported by the strong sales from its residential developments in its township projects as well as strong leasing income from its business process outsourcing and retail portfolio.
In its financial report, Megaworld Corp. said that its net income rose 15 percent year-on-year to P6.6 billion from P5.7 billion in the first nine months of this year.