SEC oks Converge's P41.55B IPO | Inquirer Business

SEC oks Converge’s P41.55B IPO

/ 05:00 PM September 24, 2020

Dennis Anthony H. Uy, founder and CEO of Converge ICT Solutions, Inc. Photo from

The Securities and Exchange Commission (SEC) has cleared an initial public offering (IPO) of as much as P41.55 billion planned by fiber optic broadband services provider Converge Information and Communications Technology Solutions Inc.

In its meeting on September 24, the SEC En Banc approved the registration statement of Converge, led by Pampanga-based businessman Dennis Anthony Uy, for listing and trading on the main board of the Philippine Stock Exchange. This offering is subject to the company’s compliance with certain remaining requirements.


The registration statement of Converge covers 480.84 million shares for primary offering, 1.024 billion shares for secondary offering and 225.79 million shares for overallotment at a maximum price of P24 per share.

From the primary offer, Converge expects to raise about P11.07 billion. About 90 percent of the net proceeds will be used to fund capital expenditures for the purpose of accelerating its nationwide fiber network rollout.


Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch will serve as joint global coordinators and joint bookrunners for the offer, together with Credit Suisse (Singapore) Limited and Merrill Lynch (Singapore) Pte. Ltd. As international joint bookrunners.

BPI Capital Corp. is sole local coordinator and joint local underwriter and joint bookrunner with BDO Capital & Investment Corporation.

Asia United Bank Corporation, First Metro Investment Corporation, Maybank ATR Kim Eng Capital Partners, Inc., PNB Capital and Investment Corporation and RCBC Capital Corporation will also act as local participating underwriters.

Converge 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 a prospectus submitted to the SEC.

“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.

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TAGS: Converge ICT, IPO, SEC
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