Megawide Construction of business magnate Edgar Saavedra is looking to raise P1.5 billion through the issuance of preferred shares.
Based on the company’s preliminary prospectus, Megawide intends to offer a total of 15 million Series 5 preferred shares at P100 apiece.
The Series 5 preferred shares will be issued to institutional and retail investors through a public offering.
The offer period will run from March 13 to 21.
RCBC Capital has been selected as sole issue manager, lead underwriter and bookrunner for the offer, which will be purely domestic and not include an international offering.
Megawide intends to use the net proceeds of the offer primarily to redeem its Series 2A preferred shares which will be due for step up on May 27.
The company’s Series 2A preferred shares were listed on the Philippine Stock Exchange on November 27, 2020, proceeds of which were used to finance various PPP projects such as the Mactan–Cebu International Airport, PITX, Public School Infrastructure Project Phase II, and Clark International Airport.
Megawide said in case the offer does not materialize or the funds raised from it 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 preferred shares.