Megawide raises P5-B to fund Cebu airport, other projects
Diversified infrastructure conglomerate Megawide Construction Corp. said on Wednesday it is raising as much as PHP5 billion in fresh funds from the capital market to finance future developments at the Mactan - Cebu International Airport (MCIA) and its proposed redevelopment of the Carbon Public Market here.
The company filed its application with the Philippine Stock Exchange (PSE) on September 21 for its sale of PHP3 billion worth of new preferred shares, with an oversubscription option of up to PHP2 billion.
“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 (the) fund, especially in this critical yet exciting stage for the company,” Edgar Saavedra, company chairman and chief executive officer, said in a statement disclosed to PSE on Wednesday.
Proceeds of the share sale will be used to fund its runway for growth program, which primarily includes the initial design stages for the MCIA multi-use project, the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange, and expansion of its pre-cast capacity.
Megawide, together with India’s GMR Infrastructure, is the private operator of MCIA.
Other projects in the company’s pipeline are the original proponent status in various stages of approval, for its proposed expansion of the MCIA, redevelopment project for the Carbon Market, the biggest public market in Cebu City, and the Ninoy Aquino International Airport rehabilitation project.
The company said the government’s continued support to jumpstart the economy through the relaxation of credit, together with stable inflation and foreign exchange rate scenarios, would support a favorable interest rate environment for the instrument’s pricing, which will be determined on the issue date.
“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. At the end of the day, we believe that all sectors – the public sector, private companies, and financial institutions – should come together for businesses to recover quickly. After all, we all share the single objective of economic progress and national development as we pursue our vision of a first-world Philippines,” Saavedra added.
The RCBC Capital Corp. and PNB Capital Corp. are the joint lead underwriters for the capital raising exercise, which is targeted to be completed this November.