THE Philippine Stock Exchange has approved the listing of 4.1 billion warrants of property developer Megaworld Corp. and the listing of the same amount of common shares as underlying assets to the warrants.

In a memorandum posted Friday, the PSE said the warrants, which would expire in five years, are meant to be listed on Dec. 14 of this year and June 14, 2010.

The company has given four warrants for every five existing common shares at no cost to all those who had subscribed to its recent P5.1 billion rights offering.

The warrants will entitle holders to buy a new common share of Megaworld for every bonus warrant held at an exercise price of P1 a share beginning on the 24th month from issue date until five years.

Megaworld expects about P4 billion in net proceeds, assuming that all the warrants were exercised.

The proceeds would finance its capital and project expenditures from 2012 to 2015.

Specifically, P1 billion will be earmarked during the three-year period to boost development of a business process outsourcing (BPO) center in its new development Newport City across the Ninoy Aquino International Airport Terminal 3 in Pasay City.

The remaining P3 billion will be used as working capital.

The company is engaged in the development of large-scale, mixed-use planned communities, or community townships in Metro Manila, that integrate residential, commercial, educational, leisure and entertainment components.

Its six major township projects are the 17-hectare Eastwood City in Quezon City; the five-hectare Forbes Town Center and the 50-hectare McKinley Hill township in Taguig City; the 25-hectare tourism-oriented Newport City in Pasay, the five-hectare Manhattan Garden City in Araneta Center, Cubao; and the 35-meter twin towers Cityplace in Chinatown, Manila.