Converge ICT $700 million IPO offering

Converge ICT

Converge ICT Solutions Inc., a fiber-optic broadband services provider in the Philippines, has selected banks for its planned domestic initial public offering that could raise about $700 million or about P35 billion pesos. This could be the biggest ever in the Philippines, according to data gathered by Bloomberg.

Bank of the Philippine Islands, BDO Unibank Inc., Morgan Stanley, and UBS Group AG are working with Converge ICT on the share sale, said the people, who asked not to be named as the information is private. A listing by the Warburg Pincus-backed company could take place as early as this year, the people said.

The Philippine Stock Exchange (PSE) hosted only one IPO so far this year, MerryMart Consumer Corp. the grocer company of Injap Sia, which raised about $31.5 million in May. PSEi index declined by 21% this year has affected investor sentiment.

Discussions around Converge ICT’s share sale are ongoing and details of the offering could still change. Representatives for BDO, Morgan Stanley, UBS, and Warburg Pincus declined to give a statement, while representatives for BPI and Converge ICT didn’t immediately respond to requests for comment.

Currently, the fiber network of Converge ICT is limited to the main island of Luzon and covers two million households, plans to expand nationwide by 2021, and boost its international bandwidth. The company anticipates broadband penetration to double over the next five years from less than 15% of households currently, Chief Executive Officer Dennis Anthony Uy said in an interview in June.

The third major telco player battle between Dito Telcom by the businessman from Davao Dennis Uy and Converge ICT by the Engineer Dennis Anthony Uy from Pampanga.

Source: Bloomberg

-Stockbytes PH, July 1, 2020

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Converge ICT