Megawide Construction Corp. looks to raise P4 billion through the issuance of new shares as it received regulatory approval to increase its authorized capital stock by another 26 million preferred shares.
The company’s authorized capital is now P5.08 billion, divided into P4.9 billion commons shares and P150 million preferred shares.
Megawide said it looks to sell through public offering or private placement 40 million preferred shares, at an indicative price of P100 per share primarily to refinance outstanding obligations.
The issuance is expected to be completed by the third quarter of this year.
Megawide said the increase in authorized capital stock is part a long-term financial management program which began February last year, when the company raised P3.6 billion from the issuance of corporate notes it used to retire maturing obligations.
This was followed on by the successful issuance of P4.4 billion Series 2 preferred shares offering in November last year to fund its long-term growth roadmap.