Megawide Construction offers P6 billion in preferred shares

Megawide Construction Corp. is set to raise up to 6 billion pesos through a new offer of preferred shares. After receiving approval from the Securities and Exchange Commission, the company is moving forward with its plan. The offer includes 60 million perpetual series 6 preferred shares, priced at 100 pesos each. These shares will be available for purchase from March 26 to April 4, with plans to list them on April 14. Megawide's CFO, Jez Dela Cruz, reported encouraging initial results, reflecting strong confidence in the company's future. The preferred shares are divided into three series: series 6A with a 7.6283% dividend rate, series 6B at 7.9606%, and series 6C at 8.2993%. They have a base offer of 3 billion pesos, with an option to raise an additional 3 billion if there is high demand. While holders will not have voting rights, they will be prioritized for dividends. Megawide can redeem these shares after five, seven, or ten years, depending on the series. Megawide plans to use the proceeds to refinance existing preferred shares, support its real estate projects, and cover general corporate expenses. The company is investing 1.8 billion pesos this year, with half allocated to its property arm, PH1 World Developers. This segment recently introduced 14 billion pesos worth of projects. Megawide has seen significant growth, with its net profit rising by 69% to 562 million pesos in the first nine months of 2024. The construction segment remains the main revenue source, accounting for 96% of total earnings.