Megawide eyes P1.5 billion from preferred share sale

MANILA, Philippines — Megawide Construction Corp., the listed engineering company chaired by Edgar Saavedra, is planning to raise P1.5 billion from the issuance of preferred shares.

According to the preliminary prospectus filed with the Securities and Exchange Commission, Megawide plans to issue 15 million Series 5 preferred at a price of P100 per share to raise up to P1.5 billion.

The company will start offering the shares on March 13. Listing of the shares is scheduled on March 31.

Net proceeds shall be used for refinancing, primarily to redeem the company’s Series 2A preferred shares that will be due for step up on May 27, 2023.

Megawide, which has been beefing up its war chest for growth and expansion, is in several industries including construction and development.

Its projects include high-rise residential, commercial, office and mixed-use developments in Metro Manila for several major local developers.

Megawide is also a major infrastructure player.  It is part of the government’s big-ticket projects such as the Metro Manila Subway and the North-South Commuter Rail-South Line.

The company also signed a joint venture agreement with the local government of Cebu City for the modernization of the Carbon Market, which will serve as Cebu City’s heritage district and will be composed of a restored Compania Maritama, a refurbished Freedom Park, and a modernized Carbon Market.

To support its contracts and to gear up for more projects in the upcoming years, Megawide has a 14-hectare state-of-the-art Precast Concrete Manufacturing Complex in Taytay, Rizal.

The facility is fully automated and is considered to be the largest and most advanced precast plant in the country, as well as in Southeast Asia.

Through this technology, Megawide will be able to realize the full potential and inherent benefits of pre-cast concrete building solutions such as shorter construction period, cost efficiency, increased productivity and enhanced operational capability.

Megawide also operates the Parañaque Integrated Terminal Exchange, which serves as the model for an integrated public transport system in the Philippines. Both these assets were secured through separate concession agreements from the government.