Megawide Construction Corp. on Tuesday said it will issue preferred shares to its affiliate Citicore Holdings Investment Inc., which will come from the recent increase in its authorized capital stock.
In its disclosure, the company’s board has approved the issuance of 13.5 million series 3 preferred shares to Citicore at P1 apiece. Citicore has paid 25 percent of its subscription in cash amounting to P3.37 million.
The said shares will come from the recent increase of Megawide in its preferred shares by P54 million, consisting of 54 million perpetual preferred shares that are non-voting, cumulative, non-participating and non-convertible.
Citicore’s investment is mainly on its renewable energy firm Citicore Power Inc., whose aim is to produce 1,000 megawatts of clean energy within 5 years using a diversified mix of renewable energy sources.
Megawide earlier said it will issue some P5 billion worth of new preferred shares, proceeds of which will be used to fund its existing projects in Parañaque and Cebu.
It said it will issue some P3 billion in new preferred shares and P2 billion as its oversubscription option.
“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, the company’s chairman and CEO, said.
The proceeds from the issuance will be used to fund its runway for growth program, which primarily includes the development of the 1.7-hectare Lot 2 at the Parañaque Integrated Terminal Exchange, expansion of its precast capacity and initial design stages for the Mactan-Cebu International Airport multi-use development. RCBC Capital Corp. and PNB Capital Corp. were picked as joint lead underwriters for the capital raising exercise, which is targeted to be completed by November this year.