The share price of broadband internet service provider Converge Information and Communications Technology Solutions Inc. dropped upon its debut at the Philippine Stock Exchange.

Converge shares closed at P15.22 per share, 9.4 percent lower than its initial public offering price of P16.80 apiece. A total of 229.74 million shares worth P3.65 billion were traded, making it the day’s most active stock.

“Investors that weren’t interested in holding it for the longer term, cashed out,” said AAA Equities Head of Research Chris Mangun.

Regina Capital Development Corporation Managing Director Luis Limlingan also noted that, “Short term traders cashed out of Converge shares as they speculated on the prospects of the country amid the pandemic. Many are debating how fast the company can meet its growth targets given effects of the lockdown.”

UPCC Securities trader Aristotle Reyes said there were a lot of sellers below the IPO price and pointed out that the offer price was high considering it was sold at about 50 times its projected earnings for 2020.

The Company and its shareholders raised P29.1 billion (including shares for overallotment option) from the IPO.

“We celebrate our successful IPO today as a significant milestone for the company and as evidence of our strong operational and technological capabilities,” said Converge ICT Founder and Chief Executive Officer Dennis Anthony H. Uy.

He added that, “We are fully committed to building the largest fiber broadband network in the Philippines and to providing affordable and reliable high-speed internet connectivity to millions of Filipinos nationwide.” Uy said “Our extensive, proprietary end-to-end fiber broadband network will enable us to support the digitalization of the Philippine economy. With our experienced senior management, differentiated offering and strong value proposition, Converge is well-placed to address this significantly unserved demand and create long-term value for our business and shareholders.”