MEGAWIDE Construction Corp. is raising fresh funds from the capital markets through the issuance of P3 billion worth of new preferred shares, with an oversubscription option of up to P5 billion, to fund its runway for growth program.
The proceeds will be used to finance the initial design stages for the Mactan-Cebu International Airport (MCIA) multi-use development and the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange as well as the expansion of its pre-cast capacity.
Megawide forms part of the GMR Megawide Cebu Airport Corp., which operates the MCIA.
In a statement Tuesday, Sept. 29, 2020, the company said it filed its application for the issuance of new shares with the Philippine Stock Exchange (PSE) on Sept. 21.
Megawide and its partner GMR Infrastructure from India have also been granted original proponent status for the proposed MCIA expansion project and the proposed Ninoy Aquino International Airport rehabilitation project.
Megawide has also proposed to undertake the Carbon Market redevelopment project in Cebu City.
“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 fund, especially in this critical yet exciting stage for the Company,” Edgar Saavedra, chairman and CEO of Megawide, said in a statement.
“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,” Saavedra added.
RCBC Capital Corp. and PNB Capital Corp. are the joint lead underwriters for the capital raising exercise, which is targeted to be completed by November 2020. (SunStar Philippines)