P5.95-B Megawide preferred shares offering cleared
Megawide Construction Corp. is all set to raise up to P5.95 billion from its preferred shares offering next month to bankroll its expansion plan, following the approval of the Securities and Exchange Commission (SEC).
The corporate watchdog said in a statement on Wednesday that its commission en banc had approved Megawide’s registration statement covering up to 30 million Series 6 preferred shares for P100 each.
The offer has an oversubscription option of up to 30 million in case of high demand.
Proceeds will be used to partially fund pipeline projects, redemption of shares and general corporate purposes, according to the SEC.
Megawide’s offer will run from March 10 to March 19, and the shares will be listed on the main board of the Philippine Stock Exchange on March 28.
PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp. were tapped as joint issue managers, joint lead underwriters and joint bookrunners for the offer.
Tycoon Edgar Saavedra, president and CEO of Megawide, earlier said they would earmark P1.8 billion in capital outlays this year, half of which would go to its real estate venture under PH1 World Developers Inc.
PH1 recently rolled out P14 billion worth of projects, including Lykke Kondo in Pasig City, the third tower of One Lancaster Park and its Southscapes horizontal development in Cavite.
The first two towers of One Lancaster Park have so far posted a 96-percent and 60-percent take-up, respectively. The newly launched third tower was 30 percent sold-out, PH1 said.
The other half of Megawide’s capital expenditure will go to the group’s construction business, which has long been its main revenue driver.
Megawide’s major projects include several public-private partnerships like the Parañaque Integrated Terminal Exchange, Metro Manila Subway System and Malolos-Clark Railway.
