Megawide Construction Corp. on Wednesday said its board has approved the issuance of up to 50 million series 2 preferred shares, which it will offer to the public.
The company said it is still in the book building process for the issuance of the series 2 preferred share offering, but it plans to offer at a maximum price of P100. The maximum amount that it can raise from the offering will be at P5 billion.
Megawide’s share price closed at P7.33 per share on Wednesday.
In its disclosure to the Philippine Stock Exchange, the company said it will also issue some 13.5 million series 3 preferred shares to its energy unit Citicore Holdings Investment Inc. as its subscription to the increase in the company’s authorized capital stock.
The company has been bagging numerous public-private partnership projects since the previous administration.
Edgar B. Saavedra, the company’s chairman and CEO, said in the immediate term, the company is looking to build a stable revenue stream by entering new segments and increasing manufacturing capacity though the pre-cast technology.
“In the long run, we aim to stabilize and consistently increase our returns to support a healthy dividend payout and eventually mature into an attractive dividend-paying stock,” he said.
In terms of construction, Saavedra said the company’s proprietary precast technologies will be the benchmark with its functionality and suitability to new occupational safety protocols.
“We anticipate greater demand for precast technology to fast track infrastructure developments and address the country’s six million housing backlog, aside from the acceptability of precast in new normal protocols at construction sites,” he said. “In 2019, external sales accounted for 40 percent of our pre-cast business and contributed significantly to our construction revenues. Moving forward, we aim to triple our pre-cast capacity to expand its application to infrastructure and housing developments and potentially generate more external sales.”
Image credits: Megawide.ph