Philippines’ Megawide to launch PHP 3 billion preferreds offering

By Marisa Wong

Los Angeles, Oct. 12 – Megawide Construction Corp. will offer PHP 3 billion of series 4 preferred shares with an oversubscription option of up to PHP 1 billion. The company has secured pre-effective approval from the Philippine Securities and Exchange Commission for the offering, according to a press release.

The public offer period will run from Oct. 13 to Oct. 19, with listing on the Philippine Stock Exchange targeted for Oct. 29.

RCBC Capital Corp. is the issue manager, lead underwriter and bookrunner with PNB Capital and Investment Corp. as co-lead underwriter.

Unless the company redeems the preferreds 3.5 years from its listing date, the shares will be subject to a dividend step-up rate.

Proceeds from the series 4 preferreds will be used to redeem the company’s series 1 preferred shares by December to avoid a step-up rate. The series 1 preferreds have a coupon of 7.025% that steps up by 487.5 basis points if the call option is not exercised on their seventh anniversary.

Megawide said that with the offering it will continue to maintain its comfortable debt-to-equity ratio and be able to accommodate future capital raising.

The construction and engineering firm is based in Quezon City, Philippines.

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