LISTED firm Megawide Constructions Corp. has received the permit to sell 15 million preferred shares worth P1.5 billion from the Securities and Exchange Commission, it said on Monday.

In a disclosure to the Philippine Stock Exchange, the company said the certificate of permit to offer securities for sale was received on March 24 from the securities regulator, which on the same date also issued the order of registration.

The order renders effective the company’s offer of 15 million cumulative, nonvoting, nonparticipating, nonconvertible redeemable shares.

Shares under the registration will have an offer price of P100 apiece and will be listed and traded on the main board of the exchange.

As stated in the offer’s final prospectus posted on March 22, the preferred shares under the ticker, MWP5, will carry a dividend rate of 7.9042%.

The construction company said the offer period for the preferred share sale will run from March 28 to April 4, with the listing set on April 17.

The company tapped RCBC Capital Corp. as sole issue manager, lead underwriter, and book runner for the transaction.

Net proceeds of the offer will primarily be used for the full redemption of Megawide’s Series 2A preferred shares, which will be due for step-up on May 27.

The prospectus reads that in case the offer does not materialize, the company will use internally generated cash and other programmed funding to finance the redemption of the Series 2A preferred shares.

Proceeds from the Series 2A preferred shares were used to finance various public-private partnerships such as Mactan-Cebu International Airport, Parañaque Integrated Transport Exchange, Public School Infrastructure Project Phase II, and Clark International Airport.

On the stock exchange on Monday, shares in Megawide slipped 3 centavos or 0.98% lower to P3.04 apiece. — Justine Irish D. Tabile