MEGAWIDE Construction Corp. is moving closer to launching its P2.97-billion preferred shares offering after receiving a pre-effective approval from the Securities and Exchange Commission (SEC).
In a stock exchange disclosure on Monday, Megawide said it received a pre-effective letter from the SEC dated Oct. 10 for its proposed issuance of Series 7 preferred shares.
The letter forms part of the regulatory process for the offering of 20 million shares, with an oversubscription option of up to 10 million additional shares.
The Series 7 preferred shares are cumulative, non-voting, non-participating, non-convertible, redeemable, and perpetual, and will be offered at up to P100 apiece.
If fully subscribed, the offering is expected to raise net proceeds of up to P2.97 billion, which Megawide plans to use to refinance debt, partially fund projects in the pipeline, and for general corporate purposes.
In a separate statement on Friday last week, the SEC said it had authorized the company’s follow-on offering of up to 30 million preferred shares, subject to Megawide’s compliance with remaining requirements.
At the local bourse on Monday, Megawide shares climbed by three centavos or 0.98% to close at P3.08 apiece. — Alexandria Grace C. Magno
