Megawide hikes capital base to P5.12 billion

MANILA, Philippines — Infrastructure builder Megawide Construction Corp. has raised its authorized capital stock (ACS) and could seek fresh funds through a public offer as it prepares its war chest for the next batch of transport projects to vie for.

In a regulatory filing, Megawide said that its board of directors last Friday approved the increase in its ACS of preferred shares by 24 percent to 186 million.

This would grow the firm’s capital base by one percent to P5.12 billion from P5.08 billion, made up of 4.93 billion in common shares and 186 million in preferred shares at P1 a piece.

Megawide said the increase in ACS allows it to issue an additional 36 million in cumulative, non-voting, non-participating, non-convertible and perpetual preferred shares. The firm will seek the approval of its stockholders and the Securities and Exchange Commission for the ACS hike to materialize.

Megawide executives also approved the subscription of Citicore Holdings Investment Inc. of 25 percent in the additional preferred shares for a total of nine million preferred shares. Citicore, for its part, provides development services for renewable projects through its subsidiaries.

Further, Megawide authorized the sale of up to 26.22 million preferred shares by way of a public offer or private placement for its remaining unissued ACS.

The construction giant has set a special stockholders’ meeting on Dec. 20 for the approval of the increase in its ACS and its upcoming offer of preferred shares.

Megawide shareholders will also decide in that meeting the consequent amendments that need to be made in the firm’s articles of incorporation.

In August Megawide announced the P25-billion sale of the Mactan Cebu International Airport to the Aboitiz Group. Under the transaction, the Aboitiz Group will secure full ownership by 2024 of GMR-Megawide Cebu Airport Corp. (GMCAC), the private operator of the Cebu gateway.

GMCAC president and Megawide executive director for infrastructure development Louie Ferrer said the sale raises the fair market value of the airport. He added that the transaction prepares Megawide’s pockets for future projects it is set to undertake.

Megawide will try to secure another portion of the Metro Manila Subway Project, this time for the stations connecting Mandaluyong City and Taguig City, as it keeps its doors open to bid for the remaining contract packages (CP) of the railway.

In May Megawide bagged the P17.75-billion CP 104 of the underground railway, awarding it the right to construct the stations of Ortigas and Shaw Boulevard, including the tunnels linking them.