LISTED construction company Megawide Construction Corp. announced on Wednesday that it plans to raise P1.5 billion through a preferred share offering in March this year.
The net proceeds from the offer will be used for the redemption of the outstanding Series 2A perpetual preferred shares of the company which will be due for step-up on May 27, Megawide said in its preliminary prospectus.
The company submitted on Jan. 6 an application to the Securities and Exchange Commission for its offer and sale of 15 million cumulative, non-voting, non-participating, non-convertible, redeemable (non-reissuable) perpetual preferred shares having a par value of P1 per share.
“The offer shares is for a total of 15 million Series 5 preferred shares, which shall be issued at a subscription price of P100 per share,” Megawide said.
The company said the sale of the shares will be made solely in the Philippines through RCBC Capital Corp. and its selling agents who will sell and distribute to third-party buyers or investors at the offer price.
The Series 5 preferred shares will be listed on the main board of the Philippine Stock Exchange on March 31 under the trading symbol “MWP5.”
“Following the offer, the company will have 2,013,409,717 common shares and 386,016,410 common shares held in treasury; 26,220,130 Series 2A preferred shares, and 17,405,880 Series 2B preferred shares, 29,000,000 Series 3 preferred shares, 40,000,000 Series 4 preferred shares issued and outstanding shares, and 15,000,000 Series 5 preferred shares,” Megawide said.
Megawide noted that the holders of the Series 5 preferred shares do not have identical rights and privileges with holders of the existing common shares and existing Series 2, Series 3, and Series 4 preferred shares of the company.
“Any and all preferred shares of the corporation shall have preference over common shares in dividend distribution and in case of liquidation or dissolution,” it said.
For the January-to-September period of 2022, the company’s attributable net loss widened to P445.3 million from a loss of P80.8 million in 2021.
The company’s consolidated net loss reached P970 million compared with the consolidated net loss of P510 million in 2021.
This was “due to a higher loss contribution from the airport business as well as landport operations,” Megawide previously said in a statement. — Arjay L. Balinbin