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Megawide raises P4.3-B from preferred shares offering

November 27, 2020, 3:39 pm

MANILA – Megawide Construction Corporation raised a total of PHP4.3 billion from its Series 2A and Series 2B preferred shares offering, almost 1.5 times oversubscribed from the base offer of PHP3 billion. 
 
The shares were listed on the Philippines Stock Exchange (PSE) in a bell ringing ceremony held Friday on the PSE trading floor in the Bonifacio Global City. 
 
“Megawide has proven to be a modern-day David battling Goliath in the country’s engineering and infrastructure sphere,” PSE president and chief executive officer Ramon Monzon said. “The success of this recent capital raising exercise demonstrates investor confidence in Megawide’s strategy, the prospects of its projects, the synergies of its partnerships as well as the vision of its management. Restrictions in construction due to the pandemic may have delayed projects but I am confident Megawide’s culture of excellence and commitment will ensure that these projects will be successfully completed in due time.” 
 
Proceeds of the exercise will be devoted to support Megawide’s growing infrastructure project portfolio, including its proposal to rehabilitate and transform the Ninoy Aquino International Airport (NAIA), further development of the country’s first true multi-modal transport terminal in Metro Manila, the Paranaque Integrated Terminal Exchange (PITX), and expansion of the company’s construction capacity.
 
“We are extremely heartened at the market’s vote of confidence in Megawide’s financial strength, our business prospects and future growth coming from our focus on delivering transformative infrastructure projects such as our proposal to rehabilitate and transform NAIA into a first world airport,” Megawide chairman and chief executive officer Edgar Saavedra said.
 
The preferred share issuance is a key step in the company’s financial management roadmap. 
 
In February 2020, Megawide refinanced maturing obligations to take advantage of a favorable interest rate environment and further optimized its capital structure with the issuance of the Series 2A and 2B preferred shares.  
 
RCBC Capital Corporation, the deal’s sole issue manager, and PNB Capital and Investment Corporation are the joint lead underwriters for the exercise. 
 
The offering was participated in by more than 100 trading participants, financial institutions, and other investors. 
 
“With the tremendous support from regulators and financial institutions, Megawide – together with the many small and medium sized enterprises who have benefitted from our business ecosystem – has been able to fund growth, provide jobs to tens of thousands, uplift local communities and become agents of positive change,” Saavedra said. (PR)
 

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