Megawide receives permit to sell preferred shares

MEGAWIDE Construction Corp. has secured approval from the Securities and Exchange Commission (SEC) to offer up to 20 million preferred shares as part of its fundraising initiative to reduce debt and meet other corporate obligations.

In a regulatory filing on Wednesday, the listed infrastructure company said it had received the SEC’s approval for the registration of up to 20 million cumulative, non-voting, non-participating, non-convertible, redeemable (non-reissuable), perpetual Series 7 preferred shares, with an oversubscription option of up to 10 million shares.

The Series 7 preferred shares comprise Series 7A preferred shares and Series 7B preferred shares, with an initial offer price of P100 each.

If fully subscribed, the offering is expected to generate net proceeds of up to P2.97 billion, which Megawide intends to use for debt refinancing, partial financing of pipeline projects, and general corporate purposes, the company said previously.

Megawide’s attributable net income declined by 14.6% to P220.79 million in the second quarter on lower revenues during the period.

For April to June, the company’s total revenues dropped by 28.34% to P4.45 billion from P6.21 billion in the same period last year.

For the six months ended June, the company’s attributable net income fell by 2.73% to P434.79 million from P447.03 million a year earlier.

At the local bourse on Wednesday, shares in the company rose by three centavos, or 0.95%, to close at P3.18 apiece. — Ashley Erika O. Jose