Megawide raises P5.3B from preferred shares offer

Megawide Construction Corp. raises P5.3 billion from its preferred shares.

MANILA, Philippines —  Megawide Construction Corp. has raised P5.3 billion from its return to the local capital market as it seeks to boost its real estate arm.

The company led by tycoon Edgar Saavedra disclosed to the stock exchange on Monday that the preferred share issuance was 1.7 times oversubscribed from the P3-billion base offer.

“There’s much to look forward to in the years ahead, as we continue to anchor on our engineering and construction DNA, coupled with our precast and construction solutions advantage, to drive our forward integration into scalable and responsive business platforms, such as our foray into real estate development,” Saavedra, chair and CEO of Megawide, said in a statement.

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The offer ran from March 26 to April 4, consisting of P1.78 billion series 6A shares, P1.19 billion series 6B shares and P2.3 billion series 6C shares. These carried dividend rates of 7.6283 percent, 7.9606 percent, and 8.2993 percent, respectively.

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

Megawide chief financial officer Jez dela Cruz earlier said proceeds raised from the offer would be used to refinance the company’s series 4 preferred shares and bankroll its real estate arms pipeline projects and general corporate purposes.