Megawide to raise P8 billion from preferred share sale

Megawide Construction Corp. is raising up to up to P8 billion in fresh funds to fund its growth program which includes the redevelopment of the Ninoy Aquino International Airport (NAIA).

In a disclosure yesterday, Megawide said it is targeting to raise P3 billion from the issuance of new preferred shares with an oversubscription option of up to P5 billion.

“We see significant opportunities in both our organic and external pipeline amid the challenges emerging from the health crisis. We are very thankful to our partners for arranging this facility and gathering together the sources and users of the fund, especially in this critical yet exciting stage for the Company,” Megawide chairman and CEO Edgar Saavedra said.

Proceeds will be used to fund the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange (PITX), expansion of its pre-cast capacity, and initial design stages for the Mactan Cebu International Airport (MCIA) multi-use development.

Other projects in the company’s pipeline include the original proponent status for the MCIA expansion, Carbon Market redevelopment in Cebu, and the NAIA rehabilitation project.

The listed construction giant wants to take advantage of investor appetite for alternative investments.

“We also want to take advantage of this window of opportunity for investors who are searching for attractive investment alternatives and for projects that offer significant value. At the end of the day, we believe that all sectors – the public sector, private companies, and financial institutions – should come together for businesses to recover quickly. After all, we all share the single objective of economic progress and national development as we pursue our vision of a First-World Philippines,” Saavedra said.

This article was originally published at PhilStar.