Megawide raises P2.37B from share sale
Megawide Construction Corp., a listed contractor partly owned by the family of tycoon Henry Sy, completed an overnight share sale that raised P2.37 billion, giving the builder added funds to pursue big-ticket infrastructure projects.
A filing at the Philippine Stock Exchange showed that Megawide and its controlling shareholder completed a multistep sale and subscription transaction, or a top-up offering, involving 118.72 million shares at P20 each. CLSA Ltd. and First Metro Investment Corp. arranged the offer.
The deal, which will expand the company’s capital by 9.36 percent, priced Megawide’s shares at a 10.7-percent discount to its closing price before the deal was announced. Megawide shares dropped 6.7 percent to P20.90 each Tuesday.
In a statement, CLSA head of investment banking Richard Taylor said the deal was significantly overbooked in Europe and Asia.
Companies have turned to top-up equity deals given the speed this route offers when it comes to raising funds.
Oliver Tan, Megawide chief financial officer, said the transaction should also widen its shareholder base and improve trading liquidity. The company’s projected public float was expected to increase to 27 percent from 17 percent, according to Megawide chief marketing officer Louie Ferrer.
The shares were crossed on the Philippine Stock Exchange Tuesday, the builder said in its filing.
Megawide has been trading near record highs, having gained about 22 percent since the start of the year, before the deal was announced.
Investors continue to view the company, which made its name building condominium towers for Sy’s SM Development Corp., as an aggressive infrastructure play after it bagged one of the government’s earlier public-private partnership (PPP) projects, which was a contract to build school classrooms.
It is pursuing other big-ticket projects, including the P17.5 billion Mactan Cebu International airport expansion and rehabilitation. Miguel R. Camus
