Megawide planning aggressive expansion of PH1 World Developers subsidiary, possible IPO

Megawide [MWIDE 3.25, up 0.9%; 105% avgVol] [link] owner Edgar Saavedra said that he intends to make its recently-acquired real estate developer, PH1 World Developers (PH1), into MWIDE’s “top income contributor” within three years. Mr. Saavedra plans to do this through expanding the PH1 project pipeline, and said that he could look to raise money through an IPO at some point in the future, but that he had no immediate plans to do that yet.

MB bottom-line: It’s easy to spot the difference in MWIDE’s tone with respect to its new real estate baby, as compared to its traditional infrastructure development projects like the NAIA Rehabilitation Project. Clearly, MWIDE is more bullish about its residential real estate prospects than it is about its big-ticket infra prospects, but I get it. MWIDE, its ownership group, and its management team have all come under intense business, financial, political, and legal pressure as a result of their attempts to expand their infrastructure footprint, so perhaps the group is looking to take that growth mindset and apply it in a field that is less politically-charged and less likely to attract unpredictable attention. But to say that PH1 will grow to be MWIDE’s top income contributor by the end of 2026 is quite a thing to say. I want to see the roadmap. At least this group has a great track record of transparency with roadmaps, so if we get the chance to see one, it will be worth it to take a closer look.

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