THE Securities and Exchange Commission (SEC) announced on Monday that it approved the P1.5-billion preferred share offering of listed firm Megawide Construction Corp.

In the commission en banc’s meeting on Feb. 23, the regulator rendered effective the registration statement of the construction company.

However, the SEC said that the registration is still subject to the company’s compliance with the remaining requirements.

The public offering covers 15 million cumulative, redeemable, nonvoting, non-participating, nonconvertible perpetual Series 5 preferred shares.

The preferred shares will be offered at P100 apiece and will be listed on the main board of the Philippine Stock Exchange.

The company expects to raise a net of P1.48 billion from the offering, which will be used to partially fund the full redemption of its outstanding preferred shares.

In a previous disclosure, the company said that the net proceeds will be used to fully redeem its Series 2A preferred shares. It added that if the funds raised are insufficient, Megawide will use internally generated cash to finance the redemption.

Proceeds from the Series 2A shares were used to finance infrastructure investments such as the new terminal at Clark International Airport and the Mactan Cebu International Airport.

The preferred share offering will run from March 13 to 21, with the listing date set on the stock exchange on March 31, as per the latest timetable submitted to the SEC.

Megawide tapped RBC Capital Corp. as the sole issue manager, lead underwriter, and sole bookrunner for the offer. — Justine Irish D. Tabile