Megawide eyes P5B from fixed-rate bonds

MEGAWIDE Construction Corp. plans to raise up to P5.0 billion in fresh funds via a public offering of Philippine pesoDENOMINATED fiXED-RATE BONDS.

In a disclosure on Monday, the Edgar Saavedra-led listed builder announced plans for a bond sale consisting of a base offer of P4.0 billion and an oversubscription option of up to P1.0 billion.

The offering will consist of three-year Series C bonds due in 2027, five-year Series D bonds due in 2029 and seven-year Series E bonds due in 2031.

The Megawide board is finalizing the terms and conditions of the transaction, which is subject to the registration and listing requirements of the Securities and Exchange Commission (SEC) and Philippine Dealing and Exchange Corp. (PDEx), respectively.

PNB Capital and Investment Corp., RCBC Capital Corp., and SB Capital Investment Corp. were tapped to serve as the joint issue managers, lead underwriters and bookrunners for the offer.

“The board further resolved to approve, confirm and ratify any of the disclosures contained in the registration statement and prospectus to be filed by the company with the SEC and the listing application with the PDEx in connection with the offer,” Megawide said.

The company last month declared regular cash dividends of P1.325 per share for its preferred shares, for a total of P53 million, payable on April 29 to all stockholders on record as of April 12.

The dividends will be sourced from Megawide’s unrestricted retained earnings as of the end of December 2022.

Megawide posted a net income of P332.5 million in the first nine months of 2023, a turnaround from the P970.4 million net loss recorded a year earlier, lifted by a nearly 50-percent surge in revenues.

On Monday, the company’s shares fell by 9 centavos, or 2.89 percent, to P3.02 each amid a 1.46 percent downturn for the benchmark Philippine Stock Exchange index.