October 17, 2016 at 11:30 pm
Othel V. Campos
Converge ICT Solutions Inc., a multi-service telecommunications company, plans to hold an initial public offering and list in the Philippine Stock Exchange by 2018, a top executive said.
The company said proceeds from the planned IPO would be used to build its own backbone in Mindanao and establish an international gateway.
“This is the plan all along but financial constraints led us to wait for better times to raise the funding we need. Listing is a way to fund our project, increase our footprint and render prices lower by offering competition,” Converge ICT chief executive Dennis Anthony Uy said.
Converge ICT is 90-percent owned by Clark Communications, which has 24 years of history in serving the cable TV market in the Visayas and dial-up connections in Luzon.
The company recently announced a P2.4-billion subsea cable laying project that will commence by end-2017.
Uy said the subsea cable laying would be a significant part the planned backbone project in Mindanao as this would connect the islands of Luzon, Visayas and Mindanao.
The company recently inaugurated a P1.2-billion fiber optic cable connection project to the homes, replacing the outdated copper cables that tended to disrupt communications during bad weather.
Fiber optic to the homes will improve connectivity with better speed and more stable connection at lower price rates, Uy said.
“In due time the price will erode. While prices are going down, more users will connect. This will help us catch with the rest of the world, in terms of connectivity,” said Uy.