SEC issues permit for Megawide’s preferred share offering

THE Securities and Exchange Commission (SEC) issued on Tuesday a certificate of permit and an order of registration for Megawide Construction Corp.’s planned “Series 4” preferred shares offering.

In a disclosure to the stock exchange, Megawide said that the SEC issued an order of registration and a certificate of permit for the company’s primary offer of 30 million cumulative, nonvoting, non-participating, nonconvertible, redeemable (non-reissuable) perpetual Series 4 preferred shares.

It has an oversubscription option of up to 10 million cumulative, nonvoting, non-participating, nonconvertible, redeemable (non-reissuable) perpetual Series 4 preferred shares at an offer price of P100 each.

“After determining that the company has complied with the required submissions as directed in the pre-effective letter issued on 7 Oct. 2021, the subject registration statement is now rendered effective,” SEC said.

“The same may now be offered for sale or sold to the public subject to full compliance with the Securities Regulation Code and its amended Implementing Rules and Regulations, Revised Code of Corporate Governance and other applicable laws, regulations, circulars and other orders as may be issued by the Commission,” the certificate of permit from SEC said.

The company said on Monday that it intends to issue and list the shares on the stock exchange by the last week of October.

It also said that proceeds will be used to redeem its Series 1 preferred shares by December this year “to avoid the step-up rate.”

“With the offering, Megawide will continue to maintain its comfortable debt-to-equity ratio and be able to accommodate future capital raising,” the company noted.

Megawide shares closed 1.37% higher at P6.64 apiece on Tuesday. — Arjay L. Balinbin