Megawide raises P4.36B from share offering

Megawide Construction Corp. has generated P4.36 billion in fresh funds from its offering of preferred shares, which it would use to finance its infrastructure projects, including its planned rehabilitation of the Ninoy Aquino International Airport (NAIA).

In a disclosure on Friday, the listed engineering and infrastructure firm reported that offering of Series 2A and Series 2B preferred shares offering was nearly 1.5 times oversubscribed from the base offer of P3 billion.

“We are extremely heartened [by] the market’s vote of confidence in Megawide’s financial strength, our business prospects and future growth coming from our focus on delivering transformative infrastructure projects, such as our proposal to rehabilitate and transform NAIA into a First World airport,” Megawide Chairman and Chief Executive Officer Edgar Saavedra said in the disclosure.

Proceeds will be used to fund not only for the rehabilitation of the country’s main gateway, but also the development of the Paranaque Integrated Terminal Exchange (PITX) and expansion of its construction capacity.

The shares were listed on the Philippine Stock Exchange on Friday morning.

“The success of this recent capital-raising exercise demonstrates investor confidence in Megawide’s strategy, the prospects of its projects, the synergies of its partnerships as well as the vision of its management,” Philippine Stock Exchange (PSE) President and Chief Executive Officer Ramon Monzon said.

“Restrictions in construction due to the [coronavirus] pandemic may have delayed projects, but I am confident [that] Megawide’s culture of excellence and commitment will ensure that these projects will be successfully completed in due time,” he added.

RCBC Capital Corp. is the sole issue manager for the transaction, and it and PNB Capital and Investment Corp. are the joint lead underwriters.

Shares of Megawide climbed by 21 centavos or 2.27 percent to finish at P9.47 apiece on Friday.

Article and Photo originally posted by Manila Times last November 28, 2020 and written by Faye Almazan.