The Securities and Exchange Commission (SEC) has approved the follow-on offering of Megawide Construction Corp., allowing the listed builder to raise as much as P2.97 billion.

The regulator said over the weekend that the SEC en banc approved Megawide’s registration statement during its 9 October meeting, covering up to 20 million preferred shares, with an oversubscription option of up to 10 million shares, subject to the company’s compliance with remaining requirements.

The preferred shares are cumulative, non-voting, non-participating, non-convertible, redeemable, and perpetual, and will be sold to the public at up to P100 per share.

Assuming the whole exercise of the overallotment option, Megawide expects to net up to P2.97 billion from the offer.

For debt repayments

The company said proceeds will be used for debt refinancing, partial financing of pipeline projects, and general corporate purposes.

The offer period is scheduled from 30 October to 10 November, with listing on the Main Board of the Philippine Stock Exchange on 19 November, according to the latest timetable submitted to the SEC.

Megawide appointed PNB Capital and Investment Corp., RCBC Capital Corp., and Security Bank Capital Investment Corp. as joint issue managers, joint lead underwriters, and joint bookrunners for the transaction.