The Philippine Stock Exchange (PSE) said it has fined construction firm Megawide Construction Corp. for incomplete details on its planned preferred share sale while not disclosing the subscription agreement between the company and a related company.
The PSE did not give details.
The company is in the midst of a P5-billion preferred shares sale, and its mother company Citicore Holdings Investments Inc. id infusing P13.5 million worth of new capital into the company.
The capital infusion comes before the share sale is completed, with Citicore paying an initial P3.37 million of the capital infusion.
The infusion follows the company’s decision to raise its capitalization to P5.054 billion divided into 4.93 billion common shares with a par value of P1 and 124 million preferred shares with a par value of P1, from the previous P5 billion, divided into 4.93 billion common shares and 70 million preferred shares — all with a par value of P1.
Megawide said Citicore has expressed its interest to subscribe to the 25 percent of the additional shares created as part of the increase in capitalization — 54 million preferred shares — paying 25 percent of the subscribed shares at its par value.