Converge reduces maximum offer price, moves up IPO timetable

Published October 7, 2020, 7:00 AM

by James A. Loyola

Converge Information and Communications Technology Solutions, Inc. (Converge) has moved up the timetable of its planned initial public offering while tightening up the price range to a maximum size of P32.89 billion from the original P41.55 billion.

 In a disclosure to the Philippine Stock Exchange, the firm said “The maximum offer price for the IPO has now been tightened to up to P19.00 per common share (from maximum of P24), taking into consideration the results of market sounding and preliminary book building of the Joint Global Coordinators and Joint Bookrunners as well as the adjustment in the offer size in light of the minimum public ownership requirement.”

Converge said “The final offer price will be determined in the evening of Thursday (October 8, 2020) and the final prospectus with all adjustments will be submitted the day after.”

The pricing date has been moved from October 9, 2020 to October 8, 2020 and Offer Period will be from October 12 to October 16, 2020 instead of October 13 to October 19.

Target listing date is now October 26, 2020 instead of the originally disclosed listing date of October 27, 2020.

Converge is offering up to 480.84 million primary shares and 1.02 billion secondary shares with an overallotment option of 225.79 million shares.

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.

Converge plans to use up to 90 percent of the proceeds from the primary offer 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.(