Converge ICT applies for P35.9B IPO
Fiber internet and other digital service provider Converge ICT Solutions Inc. filed an application at the Securities and Exchange Commission for an initial public offering (IPO) worth as much as P35.9 billion.
The SEC announced on Friday that it had received the registration statement of Converge ICT’s IPO of up to 1.496 billion common shares at a maximum offer price of P24 per share.
Converge ICT, led by Pampanga-based businessman Dennis Anthony Uy, plans to sell shares and list on the main board the Philippine Stock Exchange by October this year.
The base offer consists of 1.3 billion shares, of which 425.68 million are primary shares and 885.61 million are secondary shares. There will be 195.19 million in overallotment option shares.
About 70 percent of the firm shares will be offered for sale to foreign investors.
Proceeds from the primary offering will be used for the company’s capital expenditure requirements to accelerate its nationwide fibre network rollout and other general corporate purposes.
Morgan Stanley and UBS AG are the joint global coordinators and joint bookrunners, while BPI Capital is the sole local coordinator, joint local underwriter and joint bookrunner. BDO Capital is a joint local underwriter and book runner.
Converge ICT operates the fastest-growing end-to-end finer network in the Philippines with over 30,000 kilometers of fiber as of end-March serving about 4.1 million homes.
The company’s residential business captured over 50 percent of the market for new subscriptions from January 1, 2018 to March 31, 2020, according to the prospectus.
“We believe that the Philippine fixed broadband market is currently at an inflection point, with Converge in particular, serving as a catalyst for market growth as it continues to lead efforts to address current unserved demand,” the prospectus said.
Subscribe to INQUIRER PLUS to get access to The Philippine Daily Inquirer & other 70+ titles, share up to 5 gadgets, listen to the news, download as early as 4am & share articles on social media. Call 896 6000.