Megawide Raises P3 Billion Through Oversubscribed Series 7 Preferred Shares Offering

Megawide Construction Corp. has secured P3 billion through its Series 7 preferred shares follow-on offering, which was oversubscribed by 2.3 times, signaling robust investor confidence in the company's growth prospects. Megawide President and CEO Edgar B. Saavedra emphasized that this strong reception empowers the firm to undertake impactful, high-quality projects that contribute positively to communities and the Philippine economy.

The public offering ran from October 30 to November 10, with bids totaling P1.16 billion for Series 7A and P1.84 billion for Series 7B. These two tranches commanded final dividend rates of 7.3131% and 7.7007%, respectively. RCBC Capital Corp., SB Capital Investment Corp., and PNB Capital and Investment Corp. acted as joint issue managers, lead underwriters, and bookrunners for the transaction.

Proceeds from the offering will primarily be used to refinance maturing Series 2B preferred shares. Additionally, the excess funds raised will support other corporate needs and growth initiatives, including Megawide's participation in the government's Pambansang Pabahay Para sa Pilipino (4PH) program. The company highlighted its precast construction technology and expertise as vital assets to meet the growing demand for socialized housing.

"Megawide is entering an exciting new chapter as we are building a more resilient, stable, and sustainable value story for our shareholders," Saavedra stated. He noted that the company's order book is nearing P50 billion, and its financial position continues to strengthen, citing improvements in its consolidated debt-to-equity ratio to 1.86x and 1.42x at the parent level after recent deleveraging efforts.

The company has actively reduced short-term debt by approximately P10 billion, which has improved its leverage, liquidity, and profitability metrics.

Commenting on the offering, Toby Allan C. Arce, head of sales trading at Globalinks Securities and Stocks, Inc., noted that Megawide's follow-on share issuance reflects solid market confidence in the company's strategic direction. He added, "The offering supports Megawide's transformation into a more resilient, growth-oriented infrastructure player by retiring legacy debt, investing in scalable projects, and establishing a balanced financing structure that manages risk and return."

Megawide has been a significant partner to the government in infrastructure development, contributing to projects such as public school classrooms, Mactan-Cebu International Airport, Parañaque Integrated Terminal Exchange, and Clark International Airport. The company is also involved in ongoing infrastructure packages including the Malolos-Clark Railway and Metro Manila Subway.

The company is on track to surpass last year's performance, with 2025's nine-month net income already reaching 92% of the full-year 2024 figure.

The company's shares closed at P2.87, up by 11 centavos or 3.99% on the local stock exchange.