Converge Information and Communications Technology Solutions, Inc. (Converge) is allotting P12.7 billion to P16 billion worth of its P32.9 billion to P41.55 billion initial public offering for cornerstone investors.
In its prospectus, Converge said though that its cornerstone investors will not be subject to a lock-up requirement on the cornerstone shares. This means they can sell these shares anytime upon listing at the Philippine Stock Exchange.
Converge 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.
Of the offer shares, 70 percent are allocated for institutional investors which includes the cornerstone investors.
“Assuming an Offer Price of P19.00, the Cornerstone Shares represent no less than approximately 33.6 percent of the Offer Shares (assuming full exercise of the Overallotment Option) and approximately 38.6 percent (excluding any Option Shares),” said the prospectus.
However, “Cornerstone Investors may also participate in the Offer by purchasing Offer Shares through the book building process for the Offer Shares in addition to their Cornerstone Shares. The purchase of Cornerstone Shares will not limit the number of Offer Shares which the Cornerstone Investors may purchase as part of the Offer.”
The cornerstone investors include Genesis Investment Management, LLP; Ghisallo Master Fund LP; Macquarie Funds Management Hong Kong Limited;Magna New Frontiers Fund; Oaks Emerging and Frontier Opportunities Fund; OMERS Administration Corporation; Segantii Asia-Pacific Equity Multi-Strategy Fund; and Thornburg Investment Management, Inc.
In addition to the cornerstone investors, Warburg Pincus, a leading global private equity firm, has been the largest and most important investor and partner to Converge.
“The experience, network, and resources of Warburg Pincus have been vital in fulfilling our aspirations for scale. We value their trust and full support of our goal to give Filipinos premium internet experience,” said Converge Founder and Chief Executive Dennis Anthony Uy. 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.