Megawide Construction Corp. is raising P4 billion from an offering of preferred shares in the third quarter, largely to refinance outstanding obligations and support working capital requirements.
The company led by bilyonaryo Ed Saavedra will issue as much as 40 million preferred shares at P100 each through a public offering or private placement.
Megawide is beefing up the authorized capital of its preferred shares to 150 million to facilitate the issuance of shares.
This new fund-raising activity is part of the company’s long-term financial management program which began February last year, when Megawide raised P3.6 billion from the sale of corporate notes. This was followed by the successful issuance of P4.4 billion Series 2 preferred shares Offering in November.
“The success of these initiatives reflect the strong support and confidence of our financial partners in Megawide’s prospects and shareholder value-creation. We look forward to a more fruitful cooperation between sources and users of fund as we slowly build our country back towards a First-World Philippines,” said Saavedra, chairman and CEO of Megawide.
Megawide CFO Ramon H. Diaz said these exercises would enable the company to manage its iabilities more efficiently and strengthen its balance sheet.