Note: This is not a commentary but a press release from MWIDE. Accuretti Systems made an earlier commentary that MWIDE with 12.3 Billion current notes & loans payable may have to ask banks for accommodations.
Metro Manila, Philippines – Diversified engineering and infrastructure conglomerate
Megawide Construction Corporation (“the Company”) is raising fresh funds from the capital markets through the issuance of PHP3.0 billion worth of new preferred shares, with an oversubscription option of up to PHP5.0 billion. The Company filed its application with the Philippine Stock Exchange (PSE) last September 21, 2020.
“We see significant opportunities in both our organic and external pipeline amid the
challenges emerging from the health crisis. We are very thankful to our partners for arranging this facility and gathering together the sources and users of fund, especially in this critical yet exciting stage for the Company,” said Edgar Saavedra, Chairman and CEO of Megawide.
The proceeds from the issuance will be used to fund its runway for growth program, which
primarily includes the development of the 1.7-hectare Lot 2 at the Paranaque Integrated
Terminal Exchange (PITX), expansion of its pre-cast capacity, and initial design stages for the Mactan Cebu International Airport (MCIA) multi-use development.
Other projects in the Company’s pipeline include the Original Proponent Status (OPS), in various stages of approval, for the MCIA Expansion Proposal, Carbon Market Redevelopment, and the NAIA Rehabilitation Project.
The Company believes that the government’s continued support to jumpstart the economy through the relaxation of credit, together with stable inflation and foreign exchange rate scenarios, will support a favorable interest rate environment for the instrument’s pricing, which will be determined on issue date.
“We also want to take advantage of this window of opportunity for investors who are
searching for attractive investment alternatives and for projects that offer significant value. At the end of the day, we believe that all sectors – the public sector, private companies, and financial institutions – should come together for businesses to recover quickly. After all, we all share the single objective of economic progress and national development as we pursue our vision of a First-World Philippines,” Saavedra added.
RCBC Capital Corp. and PNB Capital Corp. are the joint lead underwriters for the capital raising exercise, which is targeted to be completed by November this year.