Converge plans to invest up to $2.5 billion by 2025

MANILA, Philippines — Converge Information and Communications Technology Solutions Inc. (Converge ICT) is targeting to bring its whole network investment to $2.5 billion by 2025.

The investments will fund the whole network and expansion as Converge ICT founder Dennis H. Uy is targeting to have all three islands of the country Luzon, Visayas and Mindanao connected under the Converge network.

“My target by 2025 is to roll out and cover 55 percent of our households nationwide. The whole network investment will reach $2.5 billion for the whole network infrastructure up to 2025,” Uy said.

Converge ICT will debut in the market on Oct 29 with a P29 billion initial public offering, the third for the year after Ayala Land’s AREIT and Edgar “Injap” Sia II’s MerryMart.

Converge ICT offered up to 1.731 billion primary, secondary and over-allotment option shares at P16.80 per share, which was determined considering the company’s ability to generate and grow earnings, short and long-term prospects, demand from investors, and overall market conditions.

“This is truly an exciting time for Converge ICT as the fixed broadband market in the Philippines is currently at an inflection point and is expected to grow at an accelerated pace. With our expertise, products, and strong value proposition, we aim to provide reliable and affordable internet to more Filipinos nationwide,” Uy said.

At present, Converge ICT owns and operates an end-to-end proprietary fiber network spanning over 35,000 kilometers in length, reaching approximately 4.1 million homes in over 200 cities and municipalities across Luzon.

As of June 30, its infrastructure has enabled the delivery of high-speed, reliable, and affordable internet service to over 731,500 residential subscribers, more than 3,000 large enterprises and corporates, as well as almost 7,500 SMEs.

According to independent market research firm Media Partners Asia (MPA), Converge ICT is the fastest-growing fixed broadband operator in the Philippines, having captured 56.6 percent market share of new residential subscriptions since 2018.

In recent years, Converge ICT has delivered industry-leading revenue growth with a CAGR of 69 percent between 2016 and 2019. In the first half of 2020, Converge ICT raked in P6.5 billion in revenue, recording a 65 percent growth compared to the same period last year.

Warburg Pincus, a US private equity firm, has been the largest and biggest investor and partner to Converge ICT.