Megawide says IPO of PH1 will wait for better market conditions

MEGAWIDE Construction Corp. on Tuesday said the planned initial public offering (IPO) of its real estate unit PH1 World Developers, Inc. is still under consideration, but the company is waiting for favorable market conditions to secure an appropriate valuation.

“PH1’s IPO is still in the pipeline, but we will have to wait until it develops into a stable, sustainable, and value-generating real estate platform,” the company said in a statement.

This followed reports that the Megawide unit is planning to delay the IPO of its real estate arm.

The listed construction and engineering company said it is revisiting the planned IPO for PH1 World Developers, adding that going public is unlikely this year. The company noted it will likely explore other options to raise capital given the current soft property market conditions.

“There’s no need for the company to rush an IPO since it can easily tap alternative sources of capital,” China Bank Capital Corp. Managing Director Juan Paolo E. Colet said in a Viber message on Tuesday.

He added that it would be best to wait until valuations for real estate companies improve and market conditions become more favorable.

“In the meantime, PH1 can focus on boosting its project pipeline and executing its growth strategy,” Mr. Colet said.

For 2026, the Philippine Stock Exchange (PSE) expects four IPOs, a modest target after only two companies listed last year from an initial target of six.

The PSE said the IPOs they are anticipating this year include electronic wallet platform GCash and PNB Holdings Corp.’s (PHC) listing by way of introduction.

Listing by introduction allows a company to list its shares on the stock exchange without immediate capital raising. This method is often used when a listed issuer distributes an unlisted issuer’s securities as a property dividend to its shareholders.

In 2025, several companies shelved their IPO plans, including Hann Holdings, Inc., SM Prime Holdings’ real estate investment trust, and Razon-led Prime Infrastructure Capital, Inc.

The local bourse is expecting to raise around P170 billion to P175 billion in capital in 2026, higher than the P144.14 billion raised in total in 2025.

“We will wait for the right time to determine if an IPO is attractive. We would also want to make sure that the company is stable and has sustainable streams moving forward,” Megawide said, noting that there are several factors currently affecting the industry.

Megawide also said it may not be considering the bond market at the moment after raising P3 billion from its Series 7 preferred shares follow-on offering last year.

At the local bourse on Tuesday, shares in Megawide rose seven centavos, or 2.22%, to close at P3.23 apiece. — Ashley Erika O. Jose