Megawide readies sale of preferred shares to raise P8B

Megawide Construction Corp. is raising up to P8 billion through the sale of preferred shares to expand its infrastructure portfolio.

The company, which star­ted as a construction company and diversified into a leading infrastructure player, eventually developing and operating Mactan Cebu International Airport (MCIA), plans to complete the share sale by November 2020.

Megawide said it would raise a minimum of P3 billion and a maximum of P8 billion from the sale of preferred shares, which typically do not have voting rights but whose holders are prioritized when dividends are paid out.

“We see significant opportunities in both our organic and external pipeline amid the challenges emerging from the health crisis,” Megawide chair and CEO Edgar Saavedra said in a statement.

He said the fundraising comes at a “critical yet exciting stage for the company.”

Megawide hired RCBC Capital Corp. and PNB Capital Corp. to manage the share sale.

Megawide plans to deploy the proceeds to develop a 1.7-hectare Lot 2 at Parañaque Integrated Terminal Exchange, the expansion of capacity at its precast factory and the initial design stages for MCIA multi-use development. —MIGUEL R. CAMUS