MANILA, Philippines – The newly listed Megawide Construction Corp. plans to double its authorized capital base to P2 billion to gain flexibility for business expansion.
In a disclosure to the Philippine Stock Exchange on Friday, Megawide said its board of directors had agreed to seek from the Securities and Exchange Commission an increase in authorized capital stock from P1 billion to P2 billion consisting of two billion shares with a par value of P1 each.
Megawide currently has 857 million outstanding and listed shares priced at the local stock market at P8.85 per share, giving it a market capitalization of P7.6 billion.
The construction company also approved the declaration of stock dividends of 257.1 million common shares equivalent to 30 percent of outstanding shares, with a par value of P1 each or a total value of P257 million to be taken from the company’s unrestricted retained earnings in 2010.
The 30 percent stock dividend will constitute the minimum subscription and paid-up requirement to Megawide’s proposed increase in authorized capital.
The proposed capital increase is in anticipation of business expansion through the acquisition of new equipment and new projects in the years ahead, a Megawide spokesperson said.
“We’re gearing up for new projects, talking to new possible clients and the acquisition of new equipment,” said Megawide vice president Louie Ferrer.
Ferrer said Megawide’s top officials had recently traveled to Japan and Saudi Arabia to look at new construction equipment and technologies.