SAAVEDRA-LED infrastructure conglomerate Megawide Construction Corp. will open the offer period for its preferred shares, valued at up to P6 billion, on Wednesday, March 26, until April 4.
“We intend to use the proceeds from the offer to refinance our Series 4 preferred shares, fund our growth projects — particularly in real estate — and support general corporate purposes,” Megawide Chief Financial Officer Jez G. Dela Cruz said in a statement on Tuesday.
The company received a permit to sell its Series 6 preferred shares from the Securities and Exchange Commission (SEC) on March 24.
Priced at P100 per share, the issuance consists of a base offer of 30 million preferred shares totaling P3 billion, with an oversubscription option of up to 30 million additional shares also worth P3 billion. The targeted listing date is April 14.
The issuance carries dividend rates of 7.6283%, 7.9606%, and 8.2993% for Series 6A, 6B, and 6C, respectively.
“The initial results of the book building were very encouraging and indicate a strong vote of confidence in Megawide’s long-term prospects,” Mr. Dela Cruz said.
Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the offering.
“We are very thankful to the regulatory bodies for giving us the green light to proceed with this offering. We are also grateful to the syndicate for working tirelessly, amid prevailing market conditions, to ensure that we complete all requirements within the prescribed timetable and secure this go-ahead,” Megawide Chairman and Chief Executive Officer Edgar B. Saavedra said.
As of end-2024, Megawide’s order book stands at P43.5 billion. Its real estate unit, PH1 World Developers, Inc., is expanding into cities such as Cavite, where an improving public transport network supports strong end-user demand.
Megawide is also developing the Cavite Bus Rapid Transit project, which will traverse several cities in the province, including Imus and Trece Martires, with a dedicated line through the Parañaque Integrated Terminal Exchange.
On Tuesday, Megawide shares fell by 0.88%, or two centavos, to P2.24 apiece. — Revin Mikhael D. Ochave
