Converge IPO price seen at P19/share

MANILA, Philippines — Converge ICT sees a price of P19 per share for its initial public offering, lower than the maximum price in its registration statement of P24 per share.

In its updated prospectus dated Oct. 5, Converge has assumed an offer price of P19 per share. At P19 per share, Converge will raise roughly P32.9 billion.

“Assuming an offer price of P19, the Cornerstone shares represent no less than approximately 33.6 percent of the offer shares, assuming full exercise of the over-allotment option and approximately 38.6 percent,” it said.

Converge’s registration statement covers 480.8 million shares for primary offering, 1.024 billion shares for secondary offering and an over-allotment option covering 225.8 million shares.

Converge will use part of the proceeds to fund its nationwide expansion program.

‘”Converge and Warburg Pincus share the strong belief that the fixed broadband market in the Philippines is currently at an inflection point with the demand for broadband subscriptions expected to increase and Converge is well-positioned to capture the tremendous market opportunities,” said Dennis H. Uy, founder and CEO of Converge,.

“The experience, network, and resources of Warburg Pincus have been vital in fulfilling our aspirations for scale. We value their trust and full support of our goal to give Filipinos premium internet experience,” he said.

The final price will be determined on Oct. 9, ahead of the offer period which will run from Oct. 13 to 19 and the listing tentatively set on Oct.  27.

“At this price (P24 per share), Converge is set to receive IPO proceeds of more than P41.52 billion, making it the largest IPO ever in the Philippines, after Pilipinas Shell’s P19.5 billion IPO in 2016,” said PinoyInvestor, a market-oriented website.

In terms of market cap, at P24 per share, Converge’s market capitalization will reach P180.6 billion, trailing the market cap of telco giants PLDT with P289.5 billion and Globe Telecom with P280.2 billion, it also said.