Megawide Construction Corp. said it has raised P5.3 billion from its Series 6 preferred shares sale
The shares were listed on Monday on the Philippine Stock Exchange’s main board.
The company said in a statement the fund-raising activity was 1.7 times oversubscribed from a base offer of P3 billion.
The offer consisted of an initial 30 million firm shares and another 30 million for an oversubscription option, sold at P100 apiece.
The shares carried a dividend yield of 7.6238 percent for 6A, 7.9606 percent for 6B, and 8.2993 percent for 6C.
Megawide said the preferred shares – cumulative, non-voting, non-convertible, and redeemable – may be redeemed starting on the 3rd anniversary of the listing date for Series 6A and Series 6B and starting on the 5th listing anniversary for Series 6C.
The company commits to adjusting the dividend rates if redemption is not made.
PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. served as joint issue managers, lead underwriters, and bookrunners.
Gerry Valenciano, president at PNB Capital, noted the high preference for the offer’s Series 6C, indicating “investor appetite for longer-term instruments.”
“The result of the offer also suggested a strong vote of confidence in Megawide’s financial health, strategic initiatives, and overall long-term prospects. We were happy to have taken part in this journey,” he said.
The sale proceeds will be used, among other things, to refinance the company’s Series 4 preferred shares and fund real estate projects.
Megawide’s real estate development arm, PH1 World Developers, Inc. (PH1), intends to establish a foothold in next-wave cities, such as those in 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.
Meanwhile, the P4 billion Series 4 preferred shares were issued in 2021 and used to redeem the company’s Series 1 preferred shares issued in 2014.
