Megawide Construction Corp. told regulators yesterday it expects to raise P6 billion from the sale of preferred shares starting today, Wednesday.
In a disclosure, Megawide said the offer price for the share sale is pegged at P100 per share, covering 60 million Series 6 preferred shares, divided into an initial 30 million for the firm offer and another 30 million to cover the oversubscription option.
The expected P6 billion proceeds will be divided into P3 billion from the firm offer and another P3 billion from oversubscription.
Megawide said the share sale runs from March 26 to April 4, with the listing date set for April 14, 2025.
It said it is pricing its preferred shares at dividend rates of 7.6283 percent for Series 6A, 7.9606 percent for Series 6B and 8.2993 percent for Series 6C.
Preferred shares, which are cumulative, non-voting, non-convertible, and redeemable, may be redeemed starting on the third anniversary of the listing date for Series 6A and Series 6B and starting on the 5th listing anniversary for Series 6C.
If redemption is not made, the company commits to adjusting the dividend rates.
PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corporation will serve as joint issue managers, lead underwriters and bookrunners.
“The initial results of the book building were very encouraging and indicate a strong vote of confidence in Megawide’s long-term prospects,” Jez de la Cruz, Megawide’s chief financial officer, said.
“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 for general corporate purposes,” he said.
Dela Cruz said Megawide’s real estate development arm, World Developers, Inc. (PH1), is aiming to set a foothold in next-wave cities, such as Cavite, where healthy end-user demand is being complemented by an improving public transport network.
Megawide is constructing the Cavite Bus Rapid Transit (BRT) Project, which will traverse several cities in the province, including Imus and Trece Martires.
“This key infrastructure is expected to help thousands of residents and commuters in the Cavite area to connect to key districts in Metro Manila via a dedicated line through the Paranaque Integrated Terminal Exchange (PITX),” de la Cruz said.
Megawide said it remains a key player in the industry with a healthy construction order book of P43.5 billion as of the end of December 2024.
