Megawide, Cityland set P8.4-B fundraising

MANILA, Philippines - The Securities and Exchange Commission (SEC) has approved P8.4 billion worth of fundraising activities of Megawide Construction Corp. and Cityland Development Corp. late last week.

Megawide, one of the country’s top building contractors, intends to raise as much as P7 billion from a preferred share sale while property firm Cityland hopes to generate P1.4 billion from the issuance of short-term commercial papers.

Megawide is offering 40 million non-voting perpetual preferred shares at P100 apiece, with an oversubscription option for up to an additional 30 million shares.

BDO Capital, BPI Capital, First Metro Investment Corp. and SB Capital were tapped as joint underwriters for the offer.

In its regulatory filing, Megawide said proceeds from the offering would be used to fund the company’s capital expenditures.

Meanwhile, Cityland will be issuing P1.4 billion worth of short term commercial papers.

“The proceeds from the offering will be used to partially finance the construction at Grand Central Residences Tower 1 and PinesPeak Tower 1,” Cityland said.

Cityland’s Grand Central Residences Tower 1 is a 40-story office, commercial and residential condominium located in Mandaluyong City.

PinesPeak Tower 1, on the other hand, is a 27-story residential condominium also located in Mandaluyong.

The projects have been 68 percent and 48.67 percent complete as of end-June, respectively.