By The Financial District
Mar 6, 20211 min
Megawide Construction Corporation is increasing its preferred shares by 26,000,000 shares to bring to 150,000,000 its non-voting, nonparticipating, non-convertible, perpetual Authorized Capital Stock (ACS) for preferred shares.
With the increases, the company will offer for sale up to 40,000,00 preferred shares with a targeted price of P100 per share, by way of public offering or private placement transaction, to raise approximately PHP4.0 billion. The process will primarily refinance outstanding obligations, and for general corporate purposes.
The preferred shares are expected to be completed by the third quarter of this year, the company said, citing the increase in CAS forms part of Megawide’s long-term financial management program which began in February last year, when the company raised P3.6 billion from the issuance of corporate notes enabling the company to retire maturing obligations.
This was followed by the successful issuance of P4.4 billion Series 2 Preferred Shares Offering last November to fund its long-term growth roadmap.
“The success of these initiatives reflects the strong support and confidence of our financial partners in Megawide’s prospects and shareholder value-creation. We look forward to more fruitful cooperation between sources and users of fund as we slowly build our country back towards a First-World Philippines,” said Edgar Saavedra, Chairman and CEO of Megawide.