Megawide Construction Corp. expects organic and external opportunities to arise amid government pump priming activities as it taps into the capital market to finance its growth.
Edgar Saavedra, Megawide chairman, said the government’s “continued support to jumpstart the economy through the relaxation of credit, together with stable inflation and foreign exchange rate scenarios,” will perk up the economy’s rebound while supporting a “favorable interest rate environment” for instruments such as the company’s P5 billion preferred share sale plans.
In August, Megawide said it looks to raise P5 billion through the issuance of preferred shares to use for future projects.
The company said the preferred share sale is divided into 30 million shares covering the base offer and another 20 million for the oversubscription.
The non-voting and cumulative will be issued in two sub-series: series 2A preferred shares and series 2B preferred shares, at a subscription price of P100 per share.
Megawide said the proceeds will be used to finance the development of a 4.5 hectare property within Mactan Cebu International Airport (MCIA) into a 400-room hotel with international brand, meetings, incentives, conference, exhibitions (MICE) facilities, and travel retail, as well as rehabilitation of the existing runway and taxiways, construction of second parallel and independent instrument runway, and development of Terminal 3 in MCIA; the construction of bus staging area and commercial and office complex in the Paranaque Intergrated Terminal Exchange (PITX); redevelopment of existing NAIA Terminals to remove decongestion and increase total passenger-handling capacity; rehabilitation of existing Carbon Market into a new public market including, construction of transport and ferry terminals, new Sto. Nino Chapel and Park, and development of commercial complex (in various phases) in the Cebu Integrated Transport Hub; and the development and subsequent operations and maintenance (O&M) of a 9.7 km railway line, comprised of 11 substations of the East West Rail Project within Metro Manila.
RCBC Capital Develpoment Corp., and PNB Capital and Investment Corp., serve as joint lead underwriters and bookrunners with RCBC Capital as sole issue manager.
“We also want to take advantage of this window of opportunity for investors who are searching for attractive investment alternatives and for projects that offer significant value.
At the end of the day, we believe that all sectors – the public sector, private companies, and financial institutions – should come together for businesses to recover quickly. After all, we all share the single objective of economic progress and national development as we pursue our vision of a First-World Philippines,” Saavedra said.
Megawide filed its application for the preferred share sale with the Philippine Stock Exchange last week.