Megawide raises P5.3B from share sale
Megawide Construction Corp. has raised P5.3 billion from its preferred share offer as it seeks to boost its real estate arm amid growing demand outside the capital region.
The company led by tycoon Edgar Saavedra disclosed to the stock exchange on Monday that its base offer worth P3 billion was 1.7 times oversubscribed.
It consists of P1.78-billion series 6A shares, P1.19-billion series 6B shares and P2.3-billion series 6C shares. These will carry dividend rates of 7.6283 percent, 7.9606 percent and 8.2993 percent, respectively.
No voting rights
Holders of preferred shares are not given voting rights, although they are prioritized during dividend payouts. While the shares don’t have a set maturity date, Megawide has the option to redeem during the fifth, seventh or 10th year, depending on the batch.
Megawide chief financial officer Jez dela Cruz earlier said proceeds would be used to refinance the company’s series 4 preferred shares, bankroll real estate projects and also for general corporate purposes.
“Against the backdrop of a national housing crisis, we believe there are significant opportunities in the local real estate space, especially our end-user demand in the affordable and socialized housing segments in next wave cities and suburban areas outside of Metro Manila,” Saavedra, chair and CEO of Megawide, said in a statement.
Megawide began its foray into the real estate market in 2023 when it acquired PH1 World Developers Inc. from affiliate firm Citicore Holdings Investments Inc.
This year, the company plans to spend P1.8 billion, half of which would go to PH1.
