PSE approves converge IPO

Published October 2, 2020, 6:00 AM

by James A. Loyola

The Philippine Stock Exchange, Inc. (PSE) has approved the planned initial public offering (IPO) application of Converge Information and Communications Technology Solutions, Inc. (Converge) worth up to P41.55 billion. 

Coverge targets to raise P36.13 billion from the sale of up to 480.84 million primary shares and 1.02 billion secondary shares at a price of up to P24.00 per share. With its overallotment option of 225.79 million shares, the amount of the public offering may go up to P41.55 billion.

“We are glad that Converge chose to tap the equities market to raise funds for its capital expenditures,” said PSE President and CEO Ramon S. Monzon.

He noted that, “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.”

The final offer price will be determined on October 9, 2020 after the company conducts its book building process. Converge will hold the offer period from October 13 to 19, 2020. 

The PSE said 10 percent of the offered shares of Converge will be reserved for local small investors (LSIs), who may subscribe to the IPO through the PSE EASy website ( or mobile application.

From the primary offer, Converge expects to raise about P11.07 billion, of which about 90 percent will be used to fund capital expenditures for the purpose of accelerating its nationwide fiber network rollout.

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.

Meanwhile, Converge 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.