SEC approves Megaworld's P10-B increase in authorized capital stock

Condominium builder Megaworld Corp.'s increase in authorized capital stock to P40.2 billion from P30.2 billion has received approval from the Securities and Exchange Commission.

 

The increase in authorized shares is meant to finance project development, land acquisition, and other corporate purposes. 

 

Megaworld approved the issuance of 10 billion shares in March at P1 each. Its parent company Alliance Global Group Inc. agreed to pay for 2.5 billion shares at P4.29 per share to raise P10.72 billion.

 

Alliance Global said it saw Megaworld stock as undervalued and that it expects  the real estate market to continue expanding because of strong demand in a robust economy.

 

Megaworld posted a net income of P6.55 billion in the first nine months of the year, higher than the P5.7 billion in the same period last year.

The 15-percent increase was attributed to higher sales of residential units and strong rental income from office and retail projects.

 

Consolidated revenues from January to September reached P26.68 billion against P23.85 billion in the same period last year. Reservation sales are also up 20 percent at P56 billion against P46.5 billion in the first nine months of 2012.

 

Rental income from office developments and lifestyle malls for the first quarters totaled P4.34 billion, 20 percent than P3.61 billion in the same period last year.

 

Megaworld group unveiled 18 projects from January to September. Ten are under Megaworld,

five from mid- to low-end brand Empire East Land Holdings and three from affordable-housing brand Suntrust Homes.

 

It also expects to have more than half a million square miles of net leasable space for offices with the completion of two towers at McKinley Hill Science Hub, three towers at 8 Campus Place, and the Venice Corporate Center by the end of the year.

 

Megaworld plans to launch a P35-billion mixed-use township project along C-5 in Pasig in 2014. — JDS, GMA News