outbrain
Close  

Converge ICT plans P35.9-B IPO

/ 04:34 AM July 04, 2020

Riding on strong demand for connectivity especially with the lockdowns prompted by the coronavirus pandemic, fiber internet and other digital services provider Converge ICT Solutions Inc. filed an application at the Securities and Exchange Commission (SEC) 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 primary and secondary common shares at a maximum offer price of P24 a share.

ADVERTISEMENT

Converge ICT, led by Pampanga-based businessman Dennis Anthony Uy, plans to sell shares and list on the main board of the Philippine Stock Exchange by October this year, subject to regulatory approvals.

The offer consists of 1.3 billion common shares consisting of 425.68 million primary shares and 885.61 million secondary shares together with an offer of up to 195.19 million option shares.

FEATURED STORIES

About 70 percent of the firm shares will be offered for sale to foreign investors.

The stock debut will bring about a quarter of the company’s shares to public hands.

Proceeds from the primary offering will be used for the company’s capital expenditure requirements to accelerate its nationwide fiber 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 Jan. 1, 2018, to March 31, 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.

ADVERTISEMENT

Subscribe to Inquirer Business Newsletter
Read Next
EDITORS' PICK
MOST READ
Don't miss out on the latest news and information.
View comments

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.

TAGS: Converge ICT Solutions Inc., IPO, Securities and Exchange Commission
For feedback, complaints, or inquiries, contact us.


© Copyright 1997-2020 INQUIRER.net | All Rights Reserved

We use cookies to ensure you get the best experience on our website. By continuing, you are agreeing to our use of cookies. To find out more, please click this link.