MANILA - The planned initial public offering of broadband service provider Converge ICT has been approved by the Philippine Stock Exchange, the PSE said on Thursday.
Converge ICT is looking to raise P36.13 billion from the sale of up to 480.84 million primary shares and 1.02 billion secondary shares at a price of up to P24 a piece, the PSE said.
The IPO may reach P41.55 billion, with its overallotment option, the stock exchange added.
“We are glad that Converge chose to tap the equities market to raise funds for its capital expenditures. Internet connectivity is a prime service at this time, with online classes and work from home arrangements due to the pandemic. We are looking forward to the company’s market debut especially as demand for internet connection is expected to remain robust,” said PSE president and CEO Ramon Monzon.
The final offer price will be determined on October 9 after the company conducts its book building process, the PSE said.
Converge will hold the offer period from October 13 to 19.
The stock exchange said 10 percent of the offered shares of Converge will be reserved for local small investors who may subscribe to the IPO through the PSE EASy website or mobile application.
Last week, Converge announced that it is earmarking $250 million or P12.8 billion to roll out more fiber connections all over the Philippines.
Converge said the amount, which was invested by US-based private equity firm Warburg Pincus, would enable it to fast-track the construction of its $1.8-billion nationwide internet backbone.
The company also said it has tapped Nokia to deploy fiber-to-the-home broadband to more than 300,000 homes and businesses in Mindanao in the next 3 years.