Megawide updates oversubscription option of preferred shares offering

Megawide Construction Corporation on Wednesday updated its new preferred shares issuance, with the oversubscription option brought down by P3 billion.

In a regulatory filing, Megawide said it now plans to offer P3 billion worth of new preferred shares, with an oversubscription option of up to P2 billion, bringing the maximum offering to a total of P5 billion.

The company, in a previous emailed statement and similar regulatory filing, announced an oversubscription option of up to P5 billion.

The offering is targeted to be completed by November, with RCBC Capital Corp. and PNB Capital Corp. as the joint lead underwriters for the capital raising.

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.

Shares of Megawide closed Wednesday at P7.25 per share, up by P0.17 or 2.40% from Tuesday's finish of P7.08 apiece. -MDM, GMA News