Megawide raises P3 billion in oversubscribed follow-on offering

MEGAWIDE Construction Corp. raised P3 billion from its Series 7 preferred shares follow-on offering, which was oversubscribed 2.3 times, signaling investor confidence in the company’s expansion plans, its president said.

“The listing of our oversubscribed Series 7 preferred shares is a powerful vote of confidence and empowers us to pursue high-impact projects — projects that are real, deliverable, high quality, and capable of uplifting communities and our Philippine economy,” Megawide President and Chief Executive Officer Edgar B. Saavedra said in a statement on Thursday.

The public offer period ran from Oct. 30 to Nov. 10. Completed bids consisted of P1.16 billion for Series 7A and P1.84 billion for Series 7B, with final rates of 7.3131% and 7.7007%, respectively.

RCBC Capital Corp., SB Capital Investment Corp., and PNB Capital and Investment Corp. served as joint issue managers, joint lead underwriters, and joint bookrunners for the exercise.

Proceeds from the offering will be used to refinance maturing Series 2B preferred shares, while the oversubscribed portion will fund other corporate requirements and growth initiatives, including participation in the government’s Pambansang Pabahay Para sa Pilipino (4PH) program, the company said.

Megawide cited its precast technology and construction expertise as key to addressing the demand for socialized housing.

“Megawide is entering an exciting new chapter as we are building a more resilient, stable, and sustainable value story for our shareholders,” Mr. Saavedra said. “Our order book is nearing P50 billion and our financial position continues to strengthen — with our consolidated debt-to-equity ratio improving to 1.86x and 1.42x at the parent level after recent deleveraging. These gains put us in a strong position for long-term growth.”

The company has also been actively retiring short-term debt, with approximately P10 billion already settled to enhance leverage, liquidity, and profitability, the company noted.

Sought for comment, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., said Megawide’s follow-on offering reflects strong investor confidence in the company’s long-term strategy.

“Overall, the follow-on offering supports Megawide’s transformation into a more resilient, growth-oriented infrastructure player: it is retiring legacy debt, investing in scalable projects, and putting in place a financing structure that balances risk and return,” he said in a phone message.

Over the years, Megawide has been a key government partner in public infrastructure, including projects such as public-school classrooms, Mactan-Cebu International Airport, Parañaque Integrated Terminal Exchange, and Clark International Airport. The company is also involved in ongoing packages for the Malolos-Clark Railway and Metro Manila Subway.

Megawide earlier said it is on track to exceed the previous year’s performance, with nine-month 2025 net income already reaching 92% of full-year 2024.

At the local bourse, shares in the company closed 11 centavos, or 3.99% higher, at P2.87 apiece. — Ashley Erika O. Jose