MEGAWIDE Construction Corp. has raised P3.38 million as part of the subscription of its parent company to its preferred shares.

The diversified engineering firm told the stock exchange on Tuesday that it recently signed a subscription agreement with Citicore Holdings Investment, Inc., which owns and controls 33.3% of its issued and outstanding capital stock.

The two companies agreed that Megawide will issue 13.5 million Series 3 preferred shares to Citicore as an initial subscription for the company’s plan to increase its authorized capital stock.

The shares are priced at P1 each, and Citicore has paid 25% of it in cash, resulting in the P3.38 million payment.

Megawide is applying with the Securities and Exchange Commission to increase its authorized capital stock for preferred shares by P54 million, which will consist of 54 million preferred shares that are non-voting, non-participating, non-convertible and perpetual in nature.

This will result in an expansion of the company’s authorized capital stock to P5.05 billion, divided into 4.93 billion common shares and 124 million preferred shares priced P1 each.

Shares in Megawide at the stock exchange closed at P7.55 apiece on Tuesday, down 29 centavos or 3.70% from a day ago. — Denise A. Valdez