Megawide preparing preferred shares sale

MANILA, Philippines — Infrastructure and engineering company Megawide Construction Corp. is laying the groundwork for a future capital raising initiative through the sale of preferred shares.

Megawide recently secured board approval for the offering and sale of up to 60 million Series 6 preferred shares consisting of one or more sub-series from the company’s unissued authorized capital stock.

The company is poised to hike its authorized capital stock of preferred shares by 64 million shares to a total of 250 million cumulative, non-voting, non-participating, non-convertible, perpetual preferred shares.

This will increase its total authorized capital stock P5.18 billion.

“The increase in authorized capital stock will allow the company to issue an additional 64 million cumulative, non-voting, non-participating, non-convertible, perpetual preferred shares with the par value of P1 per share,” Megawide said.

Citicore Holdings Investment Inc. will subscribe to 25 percent of the increase in authorized capital stock of preferred shares, or a total of 16 million preferred shares.

Megawide has set a special stockholders’ meeting on Dec. 10, 2024 for the approval of the planned increase in authorized capital stock as well as the offer of Series 6 preferred shares.

Megawide, a listed engineering and infrastructure company chaired by tycoon Edgar Saavedra, delivered a net income of P438 million in the first half, with revenues reaching P11.4 billion.

The company wants to maintain an annual order book equivalent to two to three years worth of revenues, or between P40 billion and P45 billion, depending on the size and duration of projects.

Last year, Megawide also forayed into the real estate development scene with the P5.2-billion acquisition of PH1 World Developers Inc., a developer focused on the affordable housing segment.

The company has likewise expressed interest in submitting bids for more infrastructure projects to be offered by the government.