PSE approves Converge IPO

MANILA, Philippines — It’s all systems go for Converge ICT’s initial public offering of up to P41.55 billion after getting the nod of the Philippine Stock Exchange (PSE) late Wednesday.

Last week, the Securities and Exchange Commission also approved Converge’s IPO, the second company to brave the stock market this year after the blockbuster IPO of Edgar “Injap” Sia’s MerryMart last June.

With no more hurdles for Converge’s maiden listing, the company, founded by Pampanga businessman Dennis H. Uy, is now ready to proceed with its stock market listing, tentatively set on Oct. 27.

Converge’s registration statement covers 480.8 million shares for primary offering, 1.024 billion shares for secondary offering and an over-allotment option covering 225.8 million shares, at a maximum price of P24 per piece.

From the primary offer, Converge expects to raise about P11.07 billion, which it would use for its nationwide expansion program.

Approximately 90 percent of the net proceeds will be used to fund capital expenditures for the purpose of accelerating its nationwide fiber network rollout, Converge said.

Uy’s dream for Converge and the country is to have all the three major islands of the Philippines – Luzon, Visayas and Mindanao – connected under Converge’s system by early 2021.

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) Ltd. and Merrill Lynch (Singapore) Pte. Ltd. as international joint bookrunners.

Converge tapped BPI Capital Corp. as sole local coordinator and joint local underwriter and joint bookrunner with BDO Capital & Investment Corp.

Asia United Bank Corp., First Metro Investment Corp., Maybank ATR Kim Eng Capital Partners Inc., PNB Capital and Investment Corp. and RCBC Capital Corp. will also act as local participating underwriters.

Converge is backed by New York-based private equity firm Warburg Pincus.