Megawide to start P1.5-B preferred share offering on March 28

MANILA, Philippines  – Tycoon Edgar Saavedra’s Megawide Construction Corp. is rolling out a P1.5 -billion preferred share sale next week after pricing the initial dividend rate at 7.09 percent.

In a stock exchange notice, the construction and engineering group said the offer period will run from March 28 to April 4 this year. The shares will be listed on April 17.

Megawide is selling up to 15 million preferred shares at P100 per share.

It tapped RCBC Capital Corp. as sole issue manager, lead underwriter and book runner for the offer.

The company earlier said the offer proceeds would be used to fully redeem its series 2A preferred shares that were issued in 2020, according to the deal prospectus dated Jan. 5, 2023.

These were being redeemed before the dividend rate increases due to a step-up feature that kicks in on May 27 this year.

The company retains the option to redeem the series 5 shares in 2026 or three years from the listing date, an earlier prospectus showed.

The company had proceeds from the series 2A shares were used to finance several of the company’s infrastructure investments, which include the construction of Clark International Airport’s new terminal and the Mactan Cebu International Airport public private partnership contract.

Megawide and partner GMR Infrastructure of India earlier completed the P25-billion sale of their Cebu Airport venture to the Aboitiz family’s Aboitiz Equity Ventures Inc., which will gain full ownership of the project in October next year.

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