Local internet provider Converge ICT Solutions Inc. will soon be traded over-the-counter in America’s financial markets via unsponsored American Depositary Receipts (ADRs) registered with the US Securities and Exchange Commission (SEC) to raise $2.5 million (approximately P125 million).
An ADR is a negotiable security that allows US investors to own foreign stocks easily.
An unsponsored ADR is an ADR issued by a depositary bank without the involvement, participation, or consent of the foreign company it represents ownership in.
The exercise opens up another channel for US investors to invest into Converge shares, according to Converge CEO Dennis Anthony Uy.
“This signals the confidence of an increasing number of investors in the continued strong growth of the company as we continue to reach the unserved and unserved areas in the Philippines,” he added.
Based on the F-6 registration statement filed with the US SEC, the total American Depositary Shares (ADS) registered amounted to 50 million ADS for a maximum offer price of $5.00 each or a total aggregate offering price of $2.5 million (approximately P125 million).
Converge ADS will be traded over-the-counter in the US financial markets under the symbol CVGYY.
“We remain committed to covering 55% of Philippine households by 2025,” affirmed Converge President Maria Grace Uy.
Converge recently connected Visayas and Mindanao to its nationwide backbone with its broadband services officially launched in Cebu province and started offering its services in Davao City.
It is also deepening its presence in Luzon with its aggressive expansion in North Luzon, announcing recently that it will expand the roll-out of its fiber optic cables in the Cordillera Autonomous Region from Benguet province to Kalinga and Mountain Province.
The pure fiber broadband company has also started the second phase of its domestic submarine cable project to reach the islands of Mindoro and Panay.
By the end of the year, Converge expects to land its fiber optic cables in all the major islands of the archipelago.
As of end-June 2021, Converge has reached over 8.3 million Filipino homes, or 32.5 percent of the total households in the country.
Its residential subscriber base nearly doubled from its year-ago level to 1.36 million.
Converge joined the 30-member Philippine Stock Exchange Index (PSEi) last August 16 after qualifying for early inclusion.
The PSEi member firms represent the country’s most stable and most valuable companies, with the index serving as a barometer of the performance of the Philippine economy.