Industry

Converge ICT Won’t Be the Country’s Largest IPO After it Trims Share Price to P16.80

Offer period starts on Oct. 13.
Comments

Converge ICT was set to become the Philippines’s largest initial public offering when it initially planned to raise up to $680 million (roughly P32.87 billion) in its stock market debut later this month.

ALSO READ: CONVERGE

Dennis Anthony Uy's Telco Converge Eyes $700 Million IPO, Could Be Biggest in PH History

Amidst Liza Soberano Controversy, SEC Clears Converge ICT P41.55 Billion IPO

That was if it settled on the maximum offer price of P19 per share that it announced last Monday. That was down from the previously announced P24. 

Instead, the company might have to settle for second-biggest IPO after it adjusted the price to P16.80 per share on Friday. With a planned offering of up to 1.73 billion shares and an overallotment option of another 225.8 million shares, the company now expects to raise about $600 million (P29 billion).

Robinsons Retail Holdings raised $627 million (P30.3 billion) in its IPO in 2013.

The offer period is from October 13 to 19.

Converge is riding a huge wave of demand for broadband internet services during the lockdown period, which has forced people to stay indoors.

At least seven cornerstone investors have committed to purchasing shares, according to its latest prospectus, including Canadian pension fund OMERS Administration Corp., US-based fund Thornburg Investment Management Inc., Genesis Investment Management LLP, Ghisallo Master Fund LP, Macquarie Funds Management Hong Kong Limited, Magna New Frontiers Fund, and Segantii Asia-Pacific Equity Multi-Strategy Fund.

After the IPO, and assuming the overallotment option is fully exercised, Converge ICT will have a public float of 23 percent. 

The company has said it would use the proceeds to fund the expansion of its fiber network nationwide. It currently has about 750,000 residential subscribers mostly in Metro Manila and nearby provinces.

ADVERTISEMENT - CONTINUE READING BELOW

Converge ICT has been hit with numerous complaints from frustrated customers in recent months, but the company has addressed these complaints and said it is working double time to manage new account installations.

ALSO READ: CONVERGE

Dennis Anthony Uy's Telco Converge Eyes $700 Million IPO, Could Be Biggest in PH History

Amidst Liza Soberano Controversy, SEC Clears Converge ICT P41.55 Billion IPO 

“The expansion is now at its halfway point. Initially, we encountered some delays due to the Luzon-wide quarantines, which limited the movement of personnel,” said Converge ICT founder and chief executive Dennis Anthony Uy in a statement.

CONTINUE READING BELOW
Recommended Videos
Comments
More Videos You Can Watch
About The Author
Paul John Caña
Associate Editor, Esquire Philippines
View Other Articles From PJ
Latest Feed
Load More Articles
Connect With Us