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Securities industry

Megawide Construction Corp. Secures P3-B Preferred Shares Offering Approval from SEC

Strategic Insights

— 2 min read

The Securities and Exchange Commission (SEC) has given its nod to the P3-billion preferred shares offering of Megawide Construction Corp., a move that will help the company raise funds for debt refinancing, project financing, and general corporate purposes. The preferred shares will be sold to the public at a price of up to P100 apiece, with the company expected to net up to P2.97 billion from the offer, assuming the overallotment option is fully exercised. The offer period will run from October 30 to November 10, with the company aiming to list on the main board of the Philippine Stock Exchange on November 19.

Key Takeaways:

  • The SEC has approved Megawide's P3-billion preferred shares offering, which will be sold to the public at a price of up to P100 apiece.
  • The company expects to net up to P2.97 billion from the offer, assuming the overallotment option is fully exercised.
  • Proceeds from the offer will be used for debt refinancing, partial financing of projects in the pipeline, and general corporate purposes.
  • The offer period will run from October 30 to November 10, in time for listing at the main board of the Philippine Stock Exchange on November 19.
  • Megawide tapped PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the offer.
  • The company's income for the first half of the year fell to P436.41 million from the previous year's P437.58 million due to weaker second-quarter performance.
  • Consolidated revenues for the period fell 23 percent to P8.77 billion from the previous year's P11.49 billion, as projects under construction enter the tail-end of the life cycle.
  • The company's Chairman and CEO, Edgar B. Saavedra, stated that Megawide is on track to outpace its net income from the previous year, driven by increasing contribution from its real estate business.
  • For the second quarter alone, the company's income fell to P227.19 million, down by 10 percent from the previous year's P254.16 billion, while revenues fell 28 percent to P4.45 billion from the previous P6.21 billion.

Statistics:

  • Up to P3 billion: The amount of Megawide's preferred shares offering that has been approved by the SEC.
  • 20 million: The number of preferred shares that the company is seeking to issue, with an oversubscription option of up to 10 million shares.
  • P100 apiece: The maximum price at which the preferred shares will be sold to the public.
  • P2.97 billion: The amount of net proceeds that the company expects to raise from the offer, assuming the overallotment option is fully exercised.
  • P436.41 million: The amount of Megawide's income for the first half of the year, a decline of 0.5 percent from the previous year's P437.58 million.
  • 23 percent: The decline in the company's consolidated revenues for the period to P8.77 billion from the previous year's P11.49 billion.
  • P227.19 million: The amount of Megawide's income for the second quarter, a decline of 10 percent from the previous year's P254.16 billion.
  • 28 percent: The decline in the company's revenues for the second quarter to P4.45 billion from the previous P6.21 billion.

Sources:

  • "SEC clears Megawide's P3-B preferred shares offering" (BusinessWorld, October 2023)
  • "Megawide taps PNB Capital, RCBC, Security Bank for P3-B preferred shares offer" (Philippine Daily Inquirer, October 2023)
  • Megawide Construction Corp. (SEC filing)

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