Converge IPO poised to do 'very well' on huge foreign demand

ABS-CBN News

Posted at Oct 12 2020 11:12 AM

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MANILA - Converge ICT Solutions Inc's initial public offering (IPO) is expected to do "very well" due to its huge foreign demand, BDO Capital president Ed Francisco said Monday. 

Converge priced its IPO at P16.80 per share and it should not be compared to the two large telcos whose broadband businesses are about 30 to 40 percent, Francisco told ANC.

"Some people might say it’s a little pricey but it should not be compared to the two large telecom stocks that are listed here. The broadband of Converge is still growing, they’re doubling every year, their margins are higher and that’s how we justified the higher valuation and which the foreign market has accepted," Francisco said.

"I think Converge will still do very well because of the huge foreign demand for that," he added.

Francisco said the IPO, which started its offer period on Monday, is expected to hit oversubscription.

Shares in Converge would start trading on Oct. 26.

BDO Capital and BPI Capital are the joint local underwriters, while Morgan Stanley and UBS are the global coordinators for Converge ICT's IPO.

-- with a report from Reuters