The Securities and Exchange Commission has approved the plan of Saavedra-led Megawide Construction Corporation to raise up to P6 billion from the issuance of preferred shares.

In a disclosure to the Philippine Stock Exchange, the firm said the SEC has issued on January 23, 2025 the Certificate of Filing of Enabling Resolution approving Megawide’s Enabling Resolution in relation to its offer and sale of up to 60 million Series 6 Preferred Shares  at an offer price of P100.00 per share.

The preferred shares to be issued will come from Megawide’s unissued shares which is the result of the firm recently increasing its authorized capital stock to P5.18 billion.

The expanded capital came after Megawide added 64 million preferred shares to its capitals tock to increase the total to 250 million cumulative, non-voting, non-participating, non-convertible, perpetual preferred shares.

The firm said it will also accepted the subscription of Citicore Holdings Investment Inc. to 25 percent the increase in authorized capital stock of preferred shares or a total of 16 million preferred shares worth P1.6 billion for a total of P7.6 billion fresh capital to be raised.

In 2023, Megawide sold 15 million preferred shares at P100 per share to raise P1.5 billion through a follow-on offering and listed the shares at the PSE. The preferred shares carry a dividend rate of 7.9042 percent.

Proceeds from the firm’s Series 2A preferred shares were used to finance its public-private partnerships such as Mactan-Cebu International Airport, Parañaque Integrated Transport Exchange, Public School Infrastructure Project Phase II, and Clark International Airport.