SEC clears Converge's bond offer, APMC Bacolod's IPO

MANILA, Philippines — The Securities and Exchange Commission has approved the planned fundraising activities of Converge ICT Solutions Inc. and Asia Pacific Medical Center (APMC) Bacolod Inc.

In a statement on Wednesday, the corporate regulator said it cleared the registration statements of Converge for a P20-billion bond program, and of APMC Bacolod for its P1-billion initial public offering.

Converge is planning to sell fixed-rate bonds in tranches within three years. For the first tranche, the SEC said the listed internet provider will offer to the public up to P5 billion of bonds due in 2027, with an option to float P5 billion more debt papers if there would be strong investor demand.

Net proceeds from the bond offer is at P9.87 billion, which the company will use to fund capital expenditures for the purchase of equipment and property for the expansion of its fiber network nationwide. The Pampanga-based home internet provider is aiming to cover more than half of the country's households by 2025.

According to Converge's timetable, the bonds in the first tranche will be offered from March 14 to 18, and are set to be listed on the Philippine Dealing & Exchange Corp. on March 25.

Meanwhile, APMC Bacolod will offer 3,600 blocks comprised of 10 shares each over the counter, with prices ranging from P250,000 to P400,00 per block.

The company said net proceeds from its IPO, which could amount to P997.52 million, will finance loan payment, working capital, and other expenses related to its P2.6-billion medical facility in Bacolod. This seven-story hospital will house 248 beds, covering 38,084.03 square meters of space.

APMC's IPO looks to entice investments from medical practitioners and their relatives, as well as the public.