Megawide Construction Corp. said Monday it raised P5.3 billion from the issuance of preferred shares to fund the group’s real estate business and redemption of shares.
The offering was 1.7x oversubscribed from the base offer of P3 billion, Megawide said in a disclosure to the stock exchange.
The offering for the Series 6 preferred shares consist of P1.78 billion Series 6A, with dividend rate of 7.6283 percent per annum, P1.19 billion Series 6B with dividend rate of 7.9606 percent and P2.3 billion Series C with dividend rate of 8.2993.
“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 pre-cast and construction solutions advantage, to drive our forward integration into scalable and responsive business platforms, such as our foray into real estate development,” said Edgar Saavedra, chairman and chief executive of Megawide.
“Against the backdrop of a national housing crisis, we believe there are significant opportunities in the local real estate space, especially end-user demand in the affordable and socialized housing segments in next wave cities and suburban areas outside of Metro Manila,” he said.
Megawide has several real estate projects in the pipeline under its subsidiary PH1 World Developers. It is also planning to redeem P4 billion Series 4 preferred shares issued in 2021.
PNB Capital and Investment Corp., RCBC Capital Corp. and SB Capital Investment Corp. were the joint issue managers, joint lead underwriters and joint bookrunners for the exercise.
“The result of the offer also suggested a strong vote of confidence in Megawide’s financial health, strategic initiatives, and overall long-term prospects,” said Gerry Valenciano, President of PNB Capital and Investment Corp.
Megawide’s construction order book reached P43.5 billion as of end 2024, as P17.2 billion new contracts were signed during the year.
The company said that over the long term, it targets to have an equal share between organic projects, private commercial and industrial developments and public infrastructure.
