Megawide [MWIDE 2.01, up 6.9%] [link] notified the market that its board of directors approved a range of moves that would eventually end up with the company selling 40 million preferred shares of Series 7 shares, with 10 million going to its parent, Citicore Holdings Investment Inc. (CHII), and the rest presumably going to the public through another follow-on offering (FOO). MWIDE just sold a listed P6 billion worth of Series 6 prefs a few weeks ago in March/April of this year.
MB bottom-line: I haven’t seen any coverage of this yet and there’s no preliminary prospectus available yet in any of the usual places, so it’s a little disorienting to see this come up just a little more than a month after it just closed on the last round of preferred shares that it sold. It’s a smaller tranche/series than the one that came before, but it’s not tiny, so I’m curious if this transaction was always part of the plan or if something has come up that requires MWIDE to pull in a big chunk of funding. Is this somehow related to the new Cebu City mayor threatening to “renegotiate” its contract with MWIDE to redevelop its Carbon Market [link]? I’m just grasping at straws. That project is only worth P1.1 billion all-in, so I doubt they’re initiating a P4 billion process because of some Duterte-era contract shenanigans.
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