Megawide all set to raise up to P6B from preferred shares offer

Megawide Construction Corp. is ready to proceed with its offering of preferred shares.

(UPDATED) MANILA, Philippines – Megawide Construction Corp. will start its P6-billion preferred shares offer on Wednesday, March 26, after moving past the final regulatory hurdle.

The Edgar Saavedra-led company on Tuesday said the Securities and Exchange Commission had issued a permit to sell for its series 6 preferred shares offering, which will have a base offer of P3 billion and an oversubscription option of up to P3 billion in case of high demand.

“The initial results of the book building were very encouraging and indicate a strong vote of confidence in Megawide’s long-term prospects,” said Jez dela Cruz, the group’s chief financial officer. “We intend to use the proceeds from the offer to refinance our Series 4 preferred shares, fund our growth projects particularly in real estate, and for general corporate purposes.”

The offer consists of series 6A shares with a dividend rate of 7.6283 percent, series 6B at 7.9606 percent, and series 6C at 8.2993 percent.

PNB Capital and Investment Corp., RCBC Capital Corp. and Security Bank Capital Investment Corp. were tapped as joint issue managers, joint lead underwriters and joint bookrunners.