Megawide Construction Corp. has allotted another P3 billion budget for a share buyback program in a bid to boost shareholder’s value.
Megawide said in a disclosure to the stock exchange Thursday its board of directors approved the additional P3-billion budget, raising the total share buyback program to P5 billion.
The company’s board also approved the removal of the period within which to execute the share repurchase program, making it open-ended.
The board of Megawide in October approved a P2-billion share buyback program to be implemented for period of two years.
Megawide said it was implementing the buyback as a shareholder value enhancement program. It signifies the company’s continued confidence on its long term growth prospects.
From a 52-week high of P23 per share recorded sometime in May last year, stock price of Megawide on Thursday hit a 52-week low of P11.72 apiece due to a massive sell-off caused by the outbreak of novel coronavirus, or COVID-19.
Megawide last month signed a P5-billion corporate note facility agreement, with the proceeds to be used to retire maturing debt obligation and fund growth projects general corporate purposes.
The notes, which were priced at the lowest range of the guidance, attracted some of the largest financial institutions in the country, resulting in a 1.5x oversubscription.
BPI Capital Corp. acted the as the lead arranger and book runner of the capital raising activity.
Megawide is one of the most innovative engineering and infrastructure companies in the Philippines. The company is a private partner of the government in several infrastructure projects, such as Mactan-Cebu International Airport and the Parañaque Integrated Terminal Exchange.
The consortium of Megawide, Hyundai Engineering & Construction Co. Ltd. and Dong-Ah Geological Engineering Company Ltd. submitted last year the best bid for Package 1 of the Malolos-Clark Railway Project.
Share price of Megawide on Friday closed at P11.80 per share.