MEGAWIDE Construction Corp. raised P3 billion from the follow-on offering of its Series 7 preferred shares, which was oversubscribed by 2.3 times, indicating investor confidence in the company's expansion plans, its chairman said.
Megawide Chairman and Chief Executive Officer Edgar B. “The listing of our oversubscribed Series 7 Preferred Shares is a powerful vote of confidence and empowers us to pursue high-impact projects – projects that are real, deliverable, high-quality and capable of uplifting communities and our Philippine economy,” Saavedra said in a statement on Thursday.
The public offering period ran from October 30 to November 10. Completed bids included P1.16 billion for Series 7A and P1.84 billion for Series 7B, with final rates of 7.3131% and 7.7007%, respectively.
RCBC Capital Corporation, SB Capital Investment Corporation, and PNB Capital & Investment Corporation acted as joint issue managers, joint lead underwriters, and joint bookrunners for the exercise.
The company said the proceeds from the offering will be used to refinance the matured Series 2B preferred shares, while the oversubscribed portion will finance other corporate needs and development initiatives, including participation in the government's Pambansang Pabahay Para sa Pilipino (4PH) program.
Megawide cites its precast technology and construction expertise as vital to addressing the demand for social housing.
“Megawide is entering an exciting new chapter as we build a more resilient, stable and sustainable value story for our shareholders,” Mr. Saavedra said. “Our order book stands at close to P50 billion and our financial position continues to strengthen – our consolidated debt-to-equity ratio has improved to 1.86x and 1.42x at core levels following recent deleveraging. These gains position us strongly for long-term growth.”
The company noted that the company is also actively repaying short-term debt, of which approximately P10 billion has already been repaid, to increase leverage, liquidity and profitability.
When asked for comment, Globelinx Securities & Stocks, Inc. Toby Allen C. Arce, head of sales trading at Megawide, said Megawide's follow-on offering reflects strong investor confidence in the company's long-term strategy.
“Overall, the follow-on offering supports Megawide’s transformation into a more flexible, growth-oriented infrastructure player: it is eliminating legacy debt, investing in scalable projects, and establishing a financing structure that balances risk and returns,” he said in a phone message.
Over the years, Megawide has been a major government partner in public infrastructure, including projects such as public-school classrooms, Mactan-Cebu International Airport, Parañaque Integrated Terminal Exchange, and Clark International Airport. The company is also involved in the ongoing packages for the Malolos-Clark Railway and the Metro Manila Subway.
Megawide previously said it was on track to surpass last year's performance, with nine-month 2025 net income already reaching 92% of full-year 2024.
At the local stock market, the company's shares closed 11 centavos higher, or 3.99%, at P2.87. , Ashley Erica O. jose
