Amidst Liza Soberano Controversy, SEC Clears Converge ICT P41.55 Billion IPO
The Securities and Exchange Commission (SEC) has cleared the way for the initial public offering of Converge Information and Communications Technology Solutions (Converge ICT), Inc. for a maximum of about P41.55 billion.
It is the second IPO of the year, after Edgar “Injap” Sia’s MerryMart last July.
The SEC approved the registration statement of Converge for up to 7,526,294,461 common shares for listing and trading on the main board of the Philippine Stock Exchange, subject to the company’s compliance with certain remaining requirements.
The registration statement covers 480,839,941 shares for primary offering, 1,024,433,569 shares for secondary offering and 225,791,026 shares for overallotment at a maximum price of P24 apiece.
From the primary offer, Converge expects to raise about P11.07 billion. According to Converge, approximately 90 percent of the net proceeds will be used to fund capital expenditures for the purpose of accelerating its nationwide fiber network rollout.
Converge has been in the news recently for complaints about its services from its customers. The company issued a statement addressing these complaints, but that hasn't stopped the flood of frustrated complaints on its social media pages.
Actress Liza Soberano also voiced her displeasure about the company’s services. Days later, an alleged employee of Converge posted a rape comment about the actress on social media. Soberano filed a criminal complaint against the commenter on Thursday, September 24, citing a violation of RA 10175 or the Cybercrime Prevention Act of 2012.
In a statement, Converge said it does not tolerate “such actions toward any customer” and it is dealing with the matter and plans to “carry out disciplinary measures accordingly.”
But it looks like nothing is stopping the company from going public. Morgan Stanley Asia (Singapore) Pte. and UBS AG Singapore Branch will serve as joint global coordinators and joint bookrunners for the offer, together with Credit Suisse (Singapore) Limited and Merrill Lynch (Singapore) Pte. Ltd. As international joint bookrunners.
Converge also tapped BPI Capital Corporation as sole local coordinator and joint local underwriter and joint bookrunner with BDO Capital & Investment Corporation.
Asia United Bank Corporation, First Metro Investment Corporation, Maybank ATR Kim Eng Capital Partners, Inc., PNB Capital and Investment Corporation and RCBC Capital Corporation will also act as local participating underwriters.