Business

Megawide gears up for P8B preferred share sale

Engineering and infrastructure firm Megawide Construction Corp. plans to raise as much as P8 billion via a preferred share offering in November to shore up liquidity and fund its expansion initiatives.

The base offer comprises of P3 billion worth of new preferred shares with an option to upsize it by P5 billion to take advantage of this window of opportunity for investors looking for attractive investment alternatives.

“We see significant opportunities in both our organic and external pipeline amid the challenges emerging from the health crisis. We are very thankful to our partners for arranging this facility and gathering together the sources and users of fund,especially in this critical yet exciting stage for the company,” said Edgar Saavedra, chair man and CEO of Megawide.

Saavedra said proceeds from the offer would be used to fund its runway for growth program, which primarily includes the development of the 1.7-hectare Lot 2 at the Paranaque Integrated Terminal Exchange (PITX), expansion of its pre-cast capacity, and initial design stages for the Mactan Cebu International Airport (MCIA) multi-use development, the Carbon Market redevelopment as well as to jumpstart the Ninoy Aquino International Airport modernization program.

“The company believes that the government’s continued support to jumpstart the economy through the relaxation of credit, together with stable inflation and foreign exchange rate scenarios, will support a favorable interest rate environment for the instrument’s pricing, which will be determined on issue date,” Saavedra said.

RCBC Capital Corp. and PNB CapitalCorp. are the joint lead underwriters for the share sale.

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