Megawide raising up to P8 billion from preferred shares offering

Megawide Construction Corporation is raising as much as P8 billion through the issuance of new preferred shares, to finance programs covering its runway for growth program which includes several big-ticket infrastructure projects.

In an emailed statement, Megawide said it plans to offer P3 billion worth of new preferred shares, with an oversubscription option of up to P5 billion.

The company did not indicate the schedule for the offering, but the application was filed with the Philippine Stock Exchange (PSE) on September 21, 2020.

"We see significant opportunities in both our organic and external pipeline amid the challenges emerging from the health crisis," said Edgar Saavedra, chairman and chief executive officer of Megawide.

"We are very thankful to our partners for arranging this facility and gathering together the sources and users of the fund, especially in this critical yet exciting stage for the company," he added.

Proceeds from the issuance will be used to finance the company's runway for growth program. This includes the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange (PITX) and expansion of its precast capacity, as well as the initial design stages for the Mactan-Cebu International Airport (MCIA) multi-use development.

Aside from these projects, Megawide also currently holds the original proponent status (OPS)—in various stages of approval—for the MCIA Expansion Proposal, the Carbon Market Redevelopment, and the NAIA Rehabilitation Project.

"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," said Saavedra.

"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," he added.

Megawide shares closed Tuesday at P7.08 apiece, down by 9 centavos or 1.26% from Monday's finish of P7.16 per share. — BM, GMA News