The Philippine Stock Exchange approved the P41.55-billion initial public offering of Converge Information and Communications Technology Solutions Inc.
Converge, according to the approved preliminary terms of the offering, will sell up to 1.73 billion common shares at a price of P24 apiece.
The company will sell 480.8 million primary shares with an over-allotment option for another 225.791 million common shares and 1.025 billion in secondary shares. Its shareholders include Comclark Network and Technology Corp. and Coherent Cloud Investments B.V.
Converge ICT is expected to have a public float of 23 percent after the IPO, assuming the over-allotment option is fully exercised.
Converge plans to use net proceeds from the primary offering to fund capital expenditures to accelerate 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 offering, together with Credit Suisse (Singapore) Limited and Merrill Lynch (Singapore) Pte. Ltd. as international joint bookrunners.
Converge ICT tapped BPI Capital Corp. as sole local coordinator and joint local underwriter and BDO Capital & Investment Corp. as joint book runner.
PSE president and chief executive Ramon Monzon welcomed the company’s IPO. “Internet connectivity is a prime service at this time, with online classes and work from home arrangements due to the pandemic. We are looking forward to the company’s market debut especially as demand for internet connection is expected to remain robust,” said Monzon.
Based on the existing terms, the maiden share offering of Converge could be the biggest share sale in the country since the IP of Robinsons Retail Holdings Inc. which raised P28 billion in proceeds in 2013.
Converge ICT will become the second company to conduct an IPO this year. The company started as a small cable television operator in Pampanga before rising as a fiber internet and digital consumer-centric service provider.
It provides fiber optic internet access to subscribers in Metro Manila and the provinces of Pampanga, Tarlac Bulacan, Cavite, Batangas and Pangasinan. It also plans to venture into the Visayas and Mindanao over the next couple of years.
Converge ICT said last month it would bring ultra-broadband services to Mindanao by deploying Nokia’s fiber-to-the-home solution. With the deployment, Converge ICT will connect more than 300,000 homes and businesses to ultra-fast, affordable and reliable broadband services over the next three years.
Nokia’s fiber solution allows Converge ICT to deliver a differentiated broadband service to customers and will play a key role in its ability to seamlessly evolve its network over time.
Converge ICT had 731,563 subscribers in Luzon as of June.