Shares Go Up for Construction Firm As MCRP Starts
With the formal start of the Malolos-Clark Railway Project (MCRP), the shares of Megawide Construction Corp. went up from 35 centavos or 5.10 per cent to P7.21 apiece in spite of the 0.19 per cent downward spiral of the benchmark Philippine Stock Exchange index - which also resulted to the improvement of Megawide’s shares by 2.27 per cent every week.
“I think these two affect[ed] the positive sentiment and outlook towards the company. The order book for the company will increase, thus the expected income for the company, which will improve its earnings moving forward,” said Philstocks Financial Inc. research associate Piper Chaucer Tan.
Just recently, the Department of Transportation (DoTr) and the joint venture of Megawide and South Korean firms Hyundai Engineering and Construction Co. Ltd. and Dong-ah Geological Engineering Company Ltd. signed the first contract package of MCRP. The joint venture will undertake the building of approximately 17 kilometres of the viaduct, and Megawide has revealed its plans to raise funds through the issuance of P3-billion worth of preferred shares and with an over-allotment of P2-billion to come up with a total of P5-billion. These funds will go to the development of the 1.7-hectare Lot 2 at the Paranaque Integrated Terminal Exchange (PITX), and expansion of its precast capacity, and the Mactan Cebu International Airport (MCIA) multi-use development initial designs.
“For the capital raising part, I think this is a sign that the company is preparing for the surge in construction demand once quarantine measures are further eased,” Tan added.