Converge ICT applies for P35.92-billion IPO

converge ict applies for p35 92 billion ipo - Converge ICT applies for P35.92-billion IPO

FIBER INTERNET provider Converge ICT Solutions, Inc. has submitted an application with the Securities and Exchange Commission (SEC) on Friday to do a P35.92-billion initial public offering (IPO).

In an email to reporters, the SEC said it received a registration statement from Converge ICT to do a public offering of up to 1.5 billion shares at a maximum price of P24 each. The shares will be listed on the main board of the Philippine Stock Exchange.

In its prospectus, Converge ICT said the offering will be composed of 1.3 billion common shares with an over-allotment option of up to 195.19 million common shares.

It has tapped Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch as joint global coordinators and bookrunners, BPI Capital Corp. as sole local coordinator, and with BDO Capital and Investment Corp., joint local underwriters and bookrunners for the offering.

The target retail offer period is from Oct. 13 to 19 and listing on Oct. 26. About 90% of the proceeds from the offering will be used for capital expenditures, while the remainder would go to general corporate purposes.

If the plan pushes through as scheduled, Converge ICT would be the second company to do an IPO this year, following MerryMart Consumer Corp. which raised P1.6 billion in a public listing last month.

Bloomberg reported Converge ICT’s planned IPO on Thursday, where it said this would be the Philippines’ biggest public offering to date.

Converge ICT is a local internet provider owned by Pampanga-based businessman Dennis Anthony H. Uy. Last year, it received $250.4 million in equity funding from United States-based private equity firm Warburg Pincus to expand operations.

The company’s operations is currently limited to Luzon where it had approximately 750,000 residential subscribers as of June. Converge ICT Chief Operating Officer Jesus C. Romero said in 2019 that the company’s target was to expand to Visayas and Mindanao by 2021. — Denise A. Valdez

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