Megawide Construction Corp. pegged the interest rates for its planned P6-billion preferred shares offering.
Megaworld said Series 6A preferred shares would carry an interest rate of 7.6283 percent per annum, Series 6B preferred shares, 7.9606 percent; and Series 6C preferred shares, 8.2993 percent.
The company will sell up to 30 million cumulative, non-voting, non-participating, non-convertible, redeemable, perpetual Series 6 preferred shares with an oversubscription option for another 30 million shares. The shares will be sold at P100 apiece.
Offer period commenced on March 26 and will run until April 4, 2025. The shares will be listed on the Philippine Stock Exchange on April 14, 2025.
“The initial results of the book building were very encouraging and indicate a strong vote of confidence in Megawide’s long-term prospects. We intend to use the proceeds from the offer to refinance our Series 4 preferred shares, fund our growth projects particularly in real estate, and for general corporate purposes.” said Megawide group chief financial officer Jez dela Cruz.
The company tapped PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. as the joint issue managers, joint lead underwriters and joint bookrunners for the exercise.
“We are very thankful to the regulatory bodies for giving us the greenlight to proceed with this offering. We are also grateful to the syndicate for working tirelessly, amid prevailing market conditions, to ensure that we complete all the requirements within the prescribed timetable and secure this go signal,” said Megawide chairman and chief executive Edgar Saavedra.
Aside from construction, Megawide is also engaged in real estate through its subsidiary PH1 World Developers, Inc. (PH1).
PH1 is building residential projects in key cities in Metro Manila and nearby provinces. It has projects in Bulacan, Quezon City and Cavite.
Megawide is also constructing the Cavite Bus Rapid Transit (BRT) Project, which will traverse several cities in the province, including Imus and Trece Martires.
The key infrastructure is expected to help thousands of residents and commuters in the Cavite area to connect to key districts in Metro Manila via a dedicated line through the Paranaque Integrated Terminal Exchange (PITX).
Megawide said it ended 2024 with a construction order book of P43.5 billion.