Megawide gets SEC OK for share issue

MANILA, Philippines — The Securities and Exchange Commission (SEC) has given its green light to the P1.5-billion preferred share issuance of Megawide Construction Corp.

Megawide plans to use proceeds from the offering to fund the full redemption of the company’s outstanding  Series 2A preferred shares, which will be due for step up on May 27.

In its meeting on February 23, the SEC en banc approved the registration statement of Megawide covering 15 million cumulative, redeemable, non-voting, non-participating, non-convertible, redeemable, perpetual Series 5 preferred shares, subject to the company’s compliance with certain remaining requirements.

The preferred shares will be offered at a price of P100 each, and will be listed on the main board of the Philippine Stock Exchange (PSE).

Megawide expects to net P1.48 billion from the offer, which will run from March 13 to 21, in time for listing on the PSE on March 31, according to the latest timetable submitted to the SEC.

The company tapped RCBC Capital Corp.as the sole issue manager, lead underwriter, and sole bookrunner for the offer.

The listed construction and engineering firm has been beefing up its war chest for growth and expansion, recently getting the initial P9.5 billion from the sale of its stake in the Mactan-Cebu Airport Corp. to the Aboitiz Group.

Last year, Aboitiz InfraCapital Inc. (AIC) acquired GMR Airports International B.V. (GAIBV) and Megawide shares in GMR Megawide Cebu Airport Corp. (GMCAC) for an initial P9.5 billion, covering 33.3 percent minus one share in GMCAC.

Under the deal, Megawide and GAIBV will then issue P15.5 billion worth of exchangeable notes to AIC.

When the notes mature in 2024, AIC will then trade them for the remaining 66.6 percent plus one stake in GMCAC.

Megawide’s other projects are high-rise residential, commercial, office and mixed-use development projects in Metro Manila for several major local developers.

It is also a major infrastructure player and 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 earlier 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.

Megawide also operates the Parañaque Integrated Terminal Exchange, which currently 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.