Converge ICT Solutions Inc., the fastest growing broadband operator in the Philippines, joined hands with the Securities and Exchange Commission (SEC) in encouraging small-scale businesses and start-ups to access the capital market to address their financing needs.
In the Baguio leg of the SEC’s roadshow on capital formation for micro, small, and medium enterprises (MSMEs) and start-ups, the SEC encouraged business owners to secure funding through capital market-based services such as public offering, crowdfunding, and private placements, among others.
Converge vice president and head of investor relations Owen Kieffer Ocampo inspired local entrepreneurs by sharing how Converge accelerated business growth by offering shares to the public, highlighting the boosts gained by the company when it braved the pandemic crisis and had its initial public offering (IPO) in October 2020.
“A lot of work goes into conducting the IPO but the long-term benefits definitely compensate for it. First, you will have access to lower cost of capital, and you will have the capability to accelerate growth with the funding generated in your IPO,” he said.
Converge raised P25.3 billion in one of the country’s largest recent IPOs that time. Leveraging these funds, together with its other sources of capital, Converge was able to expand its infrastructure from around 3.5 million ports in 2020 to 8.7 million ports nationwide – currently the most extensive in the country.
More significantly, Converge became a nationwide company – extending its fiber backbone from Luzon to major islands in Visayas and Mindanao – through the major capital infusion provided by the IPO.
“In just two years from the IPO, we were able to expand our network nationwide to serve underserved and unserved areas in VisMin. We have also doubled our port count and we are now focused on utilizing these assets to serve the unserved and underserved,” Ocampo added.
Aside from connecting households, Converge has also been uplifting the MSME sector as part of its vision to empower the nation to be its best.
