MANILA – Converge Information and Communications Technology Solutions Inc. (Converge ICT) moves forward with its initial public offering after earning the nod of the Philippine Stock Exchange (PSE) and receiving the permit to sell from the Securities and Exchange Commission.
Converge ICT will be offering up to 1.731 billion primary, secondary and over allotment option shares.
In accordance with consultations with its underwriters, Converge ICT has priced its IPO at PHP16.80 per share, which was determined considering the company’s ability to generate and grow earnings, short and long-term prospects, demand from investors, and overall market conditions.
“We appreciate the support from the regulatory bodies for our bid to go public. This is truly an exciting time for Converge ICT as the fixed broadband market in the Philippines is currently at an inflection point and is expected to grow at an accelerated pace. With our expertise, products, and strong value proposition, we aim to provide reliable and affordable internet to more Filipinos nationwide,” said Dennis Anthony Uy, founder and chief executive officer of Converge ICT.
Currently, Converge ICT owns and operates an end-to-end proprietary fiber network spanning over 35,000 kilometers in length, reaching about 4.1 million homes in over 200 cities and municipalities across Luzon.
As of June 30, 2020, its extensive infrastructure enables the delivery of high-speed, reliable, and affordable internet service to over 731,500 residential subscribers, more than 3,000 large enterprises and corporates, and almost 7,500 small and medium-sized enterprises (SMEs).
According to independent market research firm Media Partners Asia (MPA), Converge ICT is the fastest-growing fixed broadband operator in the Philippines, having captured 56.6-percent market share of new residential subscriptions since 2018.
Warburg Pincus, a leading global private equity firm, has been the largest and most important investor and partner to Converge ICT.
“We strongly believe that Converge ICT is well-positioned to further capture the tremendous market opportunity and we look forward to continue to be an important part of its exciting growth journey in the future,” Warburg Pincus managing director Saurabh Agarwal said.
For the IPO, Converge ICT engaged Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch as the joint global coordinators and joint bookrunners; BPI Capital Corporation as the sole local coordinator, joint local underwriter and joint bookrunner; BDO Capital & Investment Corporation as the joint local underwriter and joint bookrunner; as well as BofA Securities and Credit Suisse (Singapore) Limited as international joint bookrunners.
Asia United Bank Corporation, First Metro Investment Corporation, Maybank ATR Kim Eng Capital Partners, Inc., PNB Capital and Investment Corporation and RCBC Capital Corporation are the local participating underwriters; and China Bank Capital Corporation and SB Capital Investment Corporation are the local selling agents.
Other selling agents are the trading participants of the PSE.
The retail offer period for the IPO is from Oct.12 to 16,2020 and the target listing date of the company is Oct.26,2020 under the ticker symbol, CNVRG. (PR)
