Converge ICT secures PSE approval for P41-B IPO

The Philippine Stock Exchange (PSE) has given the go-ahead for Converge ICT Solutions Inc. to proceed with its P41.55-billion initial public offering (IPO) later this month.

According to its prospectus, Converge plans to offer 480.84 million shares for the primary offer and 1.024 billion shares for the secondary shares, possibly reaching P36.13 billion at a price of P24 apiece.

With its overallotment option of 225.79 million shares, total proceeds of the offering can grow to as high as P41.55 billion.

"We are glad the Converge chose to tap the equities market to raise funds for its capital expenditures," PSE president and chief executive officer Ramon Monzon said in an emailed statement on Thursday.

"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," he added.

The final offer price for the IPO will be determined next Friday, October 9, 2020, with the offer period scheduled at October 13 to 19, 2020.

About 90% of the net proceeds will be used to finance capital expenditures, mainly for the acceleration of the company's nationwide fiber network.

The company earlier said it plans to spend as much as P33 billion for 2020 and 2021, primarily for its backbone expansion.

Converge has tapped Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch will serve as joint global coordinators and joint bookrunners for the offer.

Credit Suisse (Singapore) Limited and Merrill Lynch (Singapore) Pte. Ltd. as international joint bookrunners, with BPI Capital Corp. as sole local coordinator and joint local underwriter and joint bookrunner, along with BDO Capital & Investment Corp.

Converge also booked Asia United Bank Corp., First Metro Investment Corp., Maybank ATR Kim Eng Capital Partners Inc., PNB Capital and Investment Corp., and RCBC Capital Corp. as local participating underwriters. — BM, GMA News