The Securities and Exchange Commission has approved the public offering by Megawide Construction Corp. of up to P1.5 billion preferred shares.
At the en banc meeting on February 23, the SEC approved the registration statement of Megawide involving 15 million cumulative, redeemable, non-voting, non-participating, non-convertible but redeemable, perpetual Series 5 preferred shares, subject to the company’s compliance with the remaining requirements.
The preferred shares are offered at P100 each and will be listed on the main board of the Philippine Stock Exchange.
Megawide expects to net P1.48 billion from the sale which will be used to partially fund the full redemption of the company’s outstanding preferred shares.
The offering will run from March 13 to 21 in time for listing at the PSE on March 31, according to the latest timetable submitted to the SEC.
Megawide has engaged RCBC Capital Corp. as sole issue manager, lead underwriter and sole bookrunner for the offer.
“The net proceeds of this offer will be used to fully redeem the Series 2A preferred shares. In case the offer does not materialize or the funds raised from the offer are insufficient to redeem the Series 2A preferred shares, the company will use internally generated cash and other programmed funding to finance the redemption of the Series 2A preferred shares,” Megawide previously said.
Megawide earlier said it will create an additional 9 million shares to the Series 3 preferred shares subscribed by Citicore Holdings Investment Inc.
Proceeds from the Series 2A preferred shares will finance its participation in the various public-private partnership projects such as the Mactan-Cebu International Airport, the Paranaque Integrated Terminal Exchange, the Public School Infrastructure Project Phase II and Clark International Airport.
In December.
Also, GMR Airports International B.V. pushed ahead with Aboitiz InfraCapital Inc. for the acquisition of shares in GMR Megawide Cebu Airport Corp., the developer and operator of Mactan-Cebu International Airport.
AIC acquired a 33 and one-third percent minus 1 share stake in GMCAC from Megawide and GMR for a total of P9.5 billion.
Megawide and GMR simultaneously issued exchangeable notes to AIC amounting to P15.5 billion, which will mature on October 30, 2024 and set to be exchanged for the remaining 66 and two-third percent plus 1 share of GMCAC’s outstanding capital stock.
Megawide is strengthening its portfolio for the more cycle-resilient, scalable and higher growth segments.
The company previously bared a plan to build several transit-centric developments in key locations across the country and ride the information technology wave through its foray into data centers.
